Chinese Housing Bubble?

Some interesting data has been released by the National Bureau of Statistics in China, A year ago housing prices were falling annualised by 2%, deflation was the problem, however this year we are seeing a big turnaround in January 10 NBS reported housing prices are rising at 8% annualised. Housing prices are rising at a double digit annualised rate and as most of us in Europe and the US  know this is unsustainable.

Unlike Mr Greenspan the Chinese authorities have stepped in and have started tightening lending operations and are raising banks reserve requirements, in order to burst this bubble. Only time will tell if this will work but its certainly worth taking a closer look at. There are ways of profiting in housing marketing and that doesn’t always have to be done by buying property!