China's Property Sector: A Bubble Bursting? | CNBC International

Didn't Eunice just drove in a NIO couple weeks ago.

If only China 🇨🇳 CCP could hide 🫣 this nightmare from the world 🌎 and the Chinese people it would not be so bad, but those damn Americans have exposed the incompetent greedy China 🇨🇳 CCP all of that housing kickback money down in their home 🏡 basements is almost busting out they need to buy another house 🏡 with a basement to hide 🙈 all of their kickback money the China 🇨🇳 CCP needs a way out of this mess. Maybe 🤔 they could build a larger space station in space of course and all of the top China 🇨🇳 CCP members could live there just in case the people start to have a mass riots they could keep themselves and their money safe from the poor Chinese man and woman it’s a great idea 💡. So…..Let’s get started on building a giant 50 mile radius space station to house the China 🇨🇳 CCP members just the top ranked of course 🤓😏😕🫡
I am bad very bad 🥹😂🤣😂

I guess we are all back here because of Evergrande

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China when having money dealt only in concrete and steel. These, if these are the only thongs Xi planned, he finds people cant eat concrete and steel.

Ignore the Chinese housing bubble at your peril. I wonder how many of these high rise apartment buildings will survive the next earthquake.

YEAH, it bursted down 10% and now the property value's up 200% :)

Looks like they are building apartments with a target customer base of Donald Trumps.

Calm down, sooner or later everything must be filled. China's population is the largest in the world. Only economists and foreign media are making noise

what a waste and we cannot even find an apartment here in Canada.

They all moved to North America.

50-60n ghost cities and here in canada we cannot find an apartment people have to live on the streets, greedy china.

After 3 years China is still doing fine. Stop making fake news. Focus on how Trump is destroying the United States.

It’s not overbuilding. Rather the government doesn’t want the normal people to be able to afford. That’s the fucking problem. The political elites and the richfucks are the ones who have popped up the price.

That was 3 years ago. It has only gotten worse. You can't move a business to a ghost city where there's no one to hire and you can't buy or even rent an apartment if you can't get a job. 70 million unoccupied homes in various stages of incompletion or if complete delapudation due to lack of maintenance. China wanted to be the US on steroids and built like it could afford it. It can't and now it has a 32 trillion dollar problem of worthless capital investment it can't solve. China is bankrupt.

The western media using the Korean  puppet reporter the propaganda for them. With 1.3 billions people that always need houses, they won't go bubble like in US  and  others western countries. Canada and Australia and even US housing market will go bubble without Chinese buying them.

It will never burst, cause it has been already deflated by the government which stopped speculative sales years ago. That will affect constraction pace which is proper thing to prevent creation of the bubble. Well yes, China's GDP will grow 6% or even 5.5% with this construction slowdown. But it's still the best result considering factual volume of GDP.

Western propaganda, this is in inner Mongolia. How come they don't report about the housing bubble in state of North Dakota, Michigan and others.

90% of families in China own their home, giving China one of the highest home ownership rates in the world. What’s more is that 80% of these homes are owned outright, without mortgages or any other leans. On top of this, north of 20% of urban households own more than one home, according to Nomura. How can so many people afford to buy so many houses?It wasn’t until the mid-90s that a series of reforms allowed urban residents to own and sell real estate. People were then given the option to purchase their previously government-owned homes at extremely favorable rates, and most of them made the transition to being property owners. Now with a population provisioned with houses that they could sell at their discretion and the ability to buy homes of their choice, China’s real estate market was set to boom. By 2010, a little over a decade later, it would be the largest such market in the world.                                                                                                                                                                                                                                                                                                                                                                                                                                                                              When a young individual strikes out on their own, lands a decent job, and begins looking to pursue marriage, getting a house is often an essential part of the conversation. Owning a home is virtually a social necessity for an adult in China, and is often a major part of the criteria for evaluating a potential spouse. As parents tend to move into their children’s homes in old age, this truly is a multi-generational affair. So parents will often fork over a large portion of their savings to provision their children with an adequate house — oftentimes buying it years in advance. If parents are not financially able to buy their kids a house outright, they will generally help with the down payment, or at the very least provide access to their social network to borrow the required funds.                                                                                                                                                                                                                                                                                                  To decrease the amount of volatility in China’s often hot property market, there are very strict rules as to how much money people can borrow from the bank for purchasing real estate. Although this slightly varies by city and wavers in response to current economic conditions, for their first home a buyer must lay down a 30% down payment, for the second it’s 60%, and for any property beyond this financing isn’t available. So for people to buy homes in this country they need to step up to the table with a large amount of cash in hand. In fact, 15% of all residential property in China is paid for in full upfront.Why there is so much liquid cash available for these relatively large down payments is straight forward: the Chinese are some of the best savers in the world.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Another way that Chinese home buyers are able to afford their down payments is via the country’s Housing Provident Fund. This fund began when the country started privatizing urban housing as way to help residents afford to buy their homes. Part of this fund included a government initiated savings plan where employees are given the option to invest a portion of their monthly earnings and have it matched by their employer to assist them with buying a house.Once the down payment is accounted for, getting mortgages in China is a relatively straight forward affair, and the standards for qualifying are relatively low. For the most part, a borrower’s monthly salary must be at least twice the monthly repayment rate of the loan. Interest rates hover around 6%. On average, those who have these loans will devote between 30% and 50% of their monthly income towards paying them back.                                                                                                                                                                                                                                          While there is much talk in China and abroad about the increasing number of Chinese home buyers taking our mortgages, relative statistics should quell the hype. Just 18% of Chinese households have mortgages, compared with half of all home owners in the USA. China’s home mortgage-to-GDP ratio was just 15% in 2012, whereas in the USA it was a staggering 81.4%. Although monthly wages in China tend to be relative low, non-performance on mortgages is virtually unheard of — in 2013 the default rate of a mere 0.17%.

Crazy.