CHINA PROPERTY EXPLOSION Boiling Point For Luxury
Reading a recent International Herald Tribune piece on China's growing real estate appetite, akin to being thrust into a trance like state and stuck into a micro wave set on 'high'. With talk of a USD45 million dollar house just put onto the market or an individual who bought 45 apartments in Shanghai in one day. With the broader property market grew 80% last year when most of the world continued to reel in self-pity.
Infrastructure continues to dominate the agenda with transportation experts predicting by the end of the next decade there will be more highways in China then the car crazed culture of the United States. At the same time as the feeding frenzy continues there are increasing questions about sustainability, market depth and perhaps rationalizing the speculation.
As for the 16 million US homeowners who day in and day out struggle with negative equity in their homes, meaning they owe more to the bank then the asset is even worth the stories must be fairy tale-like. The alter boom in Asia has created a surrealistic global property market. While China has now taken on the tragic mega project mindset such as floating cities, indoor sky slopes and grandiose skyscrapers; one can't help but think back to what history has shown in a little place called Dubai.