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China’s realty won’t go US way

Posted on 17 May 2011

Housing prices in China have risen by 53 percent over the last four years, raising concerns that a bubble has been created in the real estate sector. There is little doubt that there has been a growing speculative component in property markets in many Chinese cities and/or segments, which in turn has pushed up housing prices beyond their fundamentally justified levels.
This leads us to three important questions: First, will the bubble burst? Second, if so, when? Third, how serious may be the implications for the economy?………………………………………Full Article: Source


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