Half of China’s major cities face risk of propery bubble burst
February 27, 2014 Leave a comment
Half of China’s major cities face risk of propery bubble burst
Staff Reporter
2014-02-24
The property markets in more than half of 120 cities at prefecture level and above in China have been exposed to risks, according to a survey cited by our Chinese-language sister paper Want Daily.
The cities at risk are facing excessive property supply and extremely imbalanced economic structures.
The survey on the value of property investments in the 120 cities was carried out by Chinese property consulting firm World Union and Tongji University’s School of Property in Shanghai. Around 55 of the cities are considered fragile and highly risky for property investors.
Third and fourth-tier cities such as Ordos and Baotou in Inner Mongolia, Sanya in Hainan, Yulin in Shaanxi, Beihai in Guangxi, Huangshi in Hubei, Heilongjiang’s capital Harbin, Jiaxing in Zhejiang and Xiangyang in Hubei, as well as second-tier city Wenzhou were listed as places facing risks of a property bubble burst. Their property markets face an imbalance of supply and demand, as well as an uneven economic structure. Their economic structures are hollow and the wealth gap in these cities is huge.
Although property markets in Xiangtan and Yueyang in Hunan as well as Lianyungang in Jiangsu have been booming, they are also considered fragile due to overdevelopment caused by local major property developers. It has reduced these markets’ potential for growth, making these cities prone to high risks if they are not careful.
The disparity between property markets across China are widening and have not been limited to first, second, third, and fourth-tier cities.
Half of China’s major cities face risk of propery bubble burst
Staff Reporter
2014-02-24
The property markets in more than half of 120 cities at prefecture level and above in China have been exposed to risks, according to a survey cited by our Chinese-language sister paper Want Daily.
The cities at risk are facing excessive property supply and extremely imbalanced economic structures.
The survey on the value of property investments in the 120 cities was carried out by Chinese property consulting firm World Union and Tongji University’s School of Property in Shanghai. Around 55 of the cities are considered fragile and highly risky for property investors.
Third and fourth-tier cities such as Ordos and Baotou in Inner Mongolia, Sanya in Hainan, Yulin in Shaanxi, Beihai in Guangxi, Huangshi in Hubei, Heilongjiang’s capital Harbin, Jiaxing in Zhejiang and Xiangyang in Hubei, as well as second-tier city Wenzhou were listed as places facing risks of a property bubble burst. Their property markets face an imbalance of supply and demand, as well as an uneven economic structure. Their economic structures are hollow and the wealth gap in these cities is huge.
Although property markets in Xiangtan and Yueyang in Hunan as well as Lianyungang in Jiangsu have been booming, they are also considered fragile due to overdevelopment caused by local major property developers. It has reduced these markets’ potential for growth, making these cities prone to high risks if they are not careful.
The disparity between property markets across China are widening and have not been limited to first, second, third, and fourth-tier cities.
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