![]() ![]() ![]() With land prices reaching record levels in China’s first-tier markets in recent months at the same time that transaction volumes for new home sales are slowing down, the potential for developers to start discounting amidst rising costs has some analyst raising concerns of a downward spiral for in the industry. The credit clampdown came in response to several months of double-digit increases in housing prices in the country’s major cities during the second half of 2013. The study by Duke University and CFO magazine interviewed 36 chief financial officers at a wide variety of US firms active in China, and found that 90 percent believe that there is a bubble in real estate prices, and 30 percent of these believe that the bubble will burst during 2014.įears of a collapse in China’s real estate markets have risen this year as the stream of low-cost credit that formerly fueled the industry has largely been cut off as state-run banks have tightened lending. ![]() While market analysts remain divided over whether property prices in China are overinflated, the executives charged with safeguarding corporate finances are nearly unanimous in seeing a real estate bubble, according to recent survey. Duke’s Harvey warns of the potential global impact from China’s real estate bubble ![]()
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