Chapter 18. Short Selling the Real Estate Bubble in China
18.1 Introduction 280
18.4 Conclusion 286
This chapter investigates the real estate bubble in China by analyzing the recent trend of real estate prices, as well as comparing the relative financial costs of buying versus renting a house. Historical data depict that real estate prices in China have been growing rapidly in recent years and that current real estate price levels are beyond the affordability of urban residents. According to calculations, renting a home is preferred by urban residents rather than purchasing a new home. Evidence suggests an existing ...