A Chinese housing effervesce is not like an American housing effervesce. The American bubble has popped. The Chinese one hasn't. Yet. Americans bought houses. The Chinese in Beijing and Shanghai buy apartments. Americans bought with no money down. Many Chinese still forfeit cash with no mortgage.
American real estate was lived-in during the bubble and became empty later. Hyperappreciated Chinese real estate, on the other hand, is already vacant. Not a soul still lived there, at least to a large amount.
Additional than half the apartments in Beijing and Shanghai may be untenanted, China Daily reported last summer, citing in order from Sina.com. In Hainan it may be as high as 70 percent.
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