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China's Mortgage Debt Bubble Raises Spectre Of 2007 US Crisis "Credit News 24"

Behind the dream of property ownership they share with many like-minded friends lies an uninterrupted housing price rally in major Chinese cities that dates back to former premier Zhu Rongji’s privatisation of urban housing in the late 1990s.

Rapid urbanisation, combined with unprecedented monetary easing in the past decade, has resulted in runaway property inflation in cities like Shenzhen, where home prices in many projects have doubled or even tripled in the past two years.

City residents in their 20s and 30s view property as a one-way bet because they’ve never known prices to drop. At the same time, property inflation has seen the real purchasing power of their money rapidly diminish.

“Almost all my friends born since the 1980s and 1990s are racing to buy homes, while those who already have one are planning to buy a second,” Mai, 33, said.

“Very few can be at ease when seeing rents and home prices rise so strongly, and they will continue to rise in a scary way.”

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Title : China's Mortgage Debt Bubble Raises Spectre Of 2007 US Crisis "Credit News 24"
link : China's Mortgage Debt Bubble Raises Spectre Of 2007 US Crisis "Credit News 24"