China braced for 30% drop in property prices

patpending: Number of posts: 1526
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Post n°1

China braced for 30% drop in property prices

by patpending on Thu Jul 08, 2010 4:52 pm

http://www.telegraph.co.uk/finance/china-business/7875713/Chinas-property-market-braced-for-30pc-drop.html

China views soaring house prices as a threat to social stability, since workers are shut out of the market. The price-to-earnings ratio is 13 in Beijing and Shanghai, four times Western levels.

ZTsteve

ZTsteve: Number of posts: 105
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Post n°2

Re: China braced for 30% drop in property prices

by ZTsteve on Thu Jul 08, 2010 8:50 pm

patpending wrote:http://www.telegraph.co.uk/finance/china-business/7875713/Chinas-property-market-braced-for-30pc-drop.html

China views soaring house prices as a threat to social stability, since workers are shut out of the market. The price-to-earnings ratio is 13 in Beijing and Shanghai, four times Western levels.

A drop like that could cause riots over here.I wonder how they will take it?

Having said that, our houses are over priced and a gradual drop would make a lot of sense.

Windy

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Post n°3

Re: China braced for 30% drop in property prices

by Windy on Fri Jul 09, 2010 12:26 pm

ZTsteve wrote:A drop like that could cause riots over here.I wonder how they will take it?

Depends if they see it as fair, if they see it as the governments fault then far more serious riots than here!

But they will probably blame the Americans and take retaliation...