End of housing bubble?
China Daily | Updated: 2010-03-31 07:51
The reported timetable for the end of China's soaring home prices has recently been getting more attention than it deserves. Still, the problems a recent online article highlights are worthy of serious consideration by policymakers.
By comparing the curve of Japan's home prices between 1985-1991 with China's property prices between 2005-2008, the article predicted that China's property prices will likely plunge next year.
The story was readily accepted by many Chinese readers increasingly desperate about the unstoppable force of home prices in their cities. Though Chinese authorities have vowed to clamp down on housing price hikes in urban areas, another surge in property prices in major cities is on the horizon.
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