As China has no national pension or benefits, many investors may see property as the backbone of their long-term protection plan and they are not alone in the world.
The bubble word is increasingly being used to describe residential property markets in many countries.
The British housing market is booming, demand is buoyant in Sydney and Melbourne, Auckland house prices continue to rise, European residential property markets are picking up and the United States housing market is making a solid recovery.
Many articles about China’s residential property market refer to a “potential bubble”.
This development is not surprising after economic developments over the past decade or so.
Housing markets were unusually strong in the early 2000s, particularly in the United States. This was largely because of aggressive lending by financial institutions to fund house purchases, even to individuals with low or no income.
via NZ Herald News.