- Last month, housing prices in China rose at a record pace 12.8 percent. per year – reminds Catherine Siwek from Home Broker. – Without doubt, investors around the world have in mind the consequences of the collapse of U.S. real estate market. Therefore, the sensitivity to respond to reports of cooling of the market in China. Share prices of real estate companies in the Middle Kingdom have decreased this year, already 30 percent. – Siwek points.
According cited by the Financial Times Daokui Li from the Chinese central bank’s real estate problems are greater than in the United States and Great Britain before the outbreak of the recent crisis. There, the market collapsed because banks too easy to give mortgages to people without giving them any credit. When the borrower ceased to pay debts in bulk, head over heels for the property value has decreased, which was based a lot of investment securities.
Does China threaten a similar scenario? Analysts point out that the Chinese economy is too dependent on already overheated property market. Therefore, many of them stipulates that within 12 months of the Chinese economy could break down.