"The China real estate bubble" report from "60 minutes"

[xthk]

I know it's been told for years, seems that things haven't been improved at all.

http://www.cbsnews.com/video/watch/?id=50142079n

[closedcasket]

Interesting quote: the average apartment in Shanghai costs 45 times the amount of the average salary in Shanghai. I wonder what that would be in Hong Kong?

That to me is the biggest indicator of a bubble. During the US bubble I don't things ever got that extreme, but you were seeing ave. home prices rise to levels that were 10 to 20 times the average salary in the area.

You don't need a PhD in economics to realize that if the ave. home price is 45 times that of the ave. yearly salary of the residents....you got problems.

[Skyhook]

Interesting quote: the average apartment in Shanghai costs 45 times the amount of the average salary in Shanghai. I wonder what that would be in Hong Kong?

That to me is the biggest indicator of a bubble. During the US bubble I don't things ever got that extreme, but you were seeing ave. home prices rise to levels that were 10 to 20 times the average salary in the area.

You don't need a PhD in economics to realize that if the ave. home price is 45 times that of the ave. yearly salary of the residents....you got problems.

You obviously missed the part about the biggest difference between China's property market and the USA's. When the China property bubble bursts, it will take out multiple generations of wealth accumulation, a familys combined wealth with it. You see, unlike us westerners who generally purchase property solo, or as a working husband and wife, the Chinese, like a lot of East Asians, tend to buy property as a family, so it wont be funded by an individual, but from many financial sources within the whole family.

I saw this happen a lot when Vietnamese ( boat people ) immigrants arrived in Australia in 1976, but within a short time these people could afford to buy houses outright, while the rest of us err saved and paid mortgages... Then we worked out how they did it, 12 members of the family lived in the same house, pooling their collective family income to provide a roof over their heads.

So, the biggest side affect of China's, capitalist greed will be, what will happen to those families who have literally bet the family farms on their dinky little concrete boxes....?

It is all going to end badly, things like un-reigned CAPITALISM tend to cause very bloody revolutions, when the starving/exploited ( that includes you INDIA ) poor get sick of the rich and start killing those that allow them to starve... The biggest concern that I can see, when the property bubble does finally pop, the effects of which will likely take out all of the Asian economies...

[closedcasket]

So you are trying to tell me that it is common for Asian/Chinese families to pool money together and live under one roof? I think that is fairly common knowledge. What are you going to tell me next, that the summers in Hong Kong are humid?

So what did I miss again?

[Morrison]

There is no Real Estate Bubble.
There is not even Real Estate.
All you can buy is a usage right, 使用权