Watch this video. People are literally stampeding into developer’s office to buy properties!
There are also news that you have to win some rounds of mahjong competition before allowed to buy properties, because there aren’t enough to go around.
If that’s not bubble I don’t know what is…
To Chinese government’s credit, they recognize it’s a huge problem and trying to cool down the market. I wish them luck.
Oooooh, my mom doesn’t need another property at her age but she would love the mah jong action…
We Chinese surely love properties. I wonder if that’s because we need to compensate for something? My mom is also crazy about houses…
All I know is that the classic property investment approach for the most of the older Bay Area Chinese population, irregardless if they are 1st generation or 2nd generation immigrants is Buy and NOT rent (unless it is low cost housing) even if there are 4 people sharing a bedroom. Build/remodel more rooms “under the table” to avoid inspection to keep overall cost low. Forget high-end fixture/construction and just go with cheap or low quality construction/contractor bids. Then repeat for another building and and rent it out hopefully to Section 8 tenants to have a “steady” cash flow and “retirement” income.
Only problem now in the Bay Area is that the entry price for a SFH and remodeling costs so high that most low income families even working 2 jobs will not be able to save up to compete with “cash buyers”, highly paid, or “Tech” workers. Guess have to wait for the next down turn.
What about all the vacant cities that were built? Those can’t be full. Are those the equivalent of comparing Modesto to the peninsula?
Right. And to make matter worse imagine you live in Modesto without a car and have to rely on non existent public transport.
I guess sometimes if you build it they don’t come.
No compensation for anything, just the simple notion that if you owned your own roof no one can make you move/leave. Let’s be honest, the reason why we (Chinese) have done so well in this country has to be partially attributed to property ownership and the great appreciation in value from those holdings.
Again, if they won’t open the door when you knock, you go buy the freaking building that the door hangs on.
They are not full. You can move in them cheaply if you don’t need to work or shop. 
Prices are still rising in the tech hubs and Beijing and Shanghai. They are falling in many other parts of China
Same for USA 
I did some checking of Detroit suburbs. They aren’t quite back to peak prices, but they are up at least 50% from the bottom.
Detroit downtown is back big time.
Imagine a day will come that bay area open house will have stampede like this !
IIRC, we had similar situation in Santa Clara, 700+ people visiting home during 2010/2011 around when List price was low. I do not remember the listing agent name, but drove by to see the crowd. Even police was there rounding the street !
I have no doubt Chinese RE is a bubble right now. It may even be one of the biggest in the world. If it popped, we will be in BIG trouble… I am watching this closely.
You may be talking about that guy who used to start their prices at $150K.
I participated in one of his open houses. The classic old West Movies where the medicine man was selling his stuff against the flu reminded me of him. Pathetic!
chinese people have their own thinking. They have 0 trust in any currency(RMB, US, any currency)
They rather pay 10 mil and lost 7 mil in real estate than holding useless piece of paper currency.
Good point If money devalues, price of real estate won’t decline. The only problem with real estate in China is all leasehold, 70 years, right? If I’m mainland Chinese, I would buy elsewhere such as Bay Area, Singapore, Canada and Australia.
Opinion piece, but still interesting about the housing situation over there…
