China Housing Bubble Re-Inflates – “Even We Didn’t Expect The Prices To Go Up This Much”

They say that history tends to repeat itself and for the China housing market, and its constantly repeating cycle of bubbles, that certainly seems to be the case. It seems like just yesterday that we pointed out the following video of ghost towns springing up all over China with millions of square feet of newly constructed residential living space but not a single resident.

And now, as we’ve pointed out numerous times recently (see posts here and here), China’s home prices are bubbling up all over again. Prices in China’s smaller cities, in particular, are seeing the largest gains as buyers from the larger tier one cities go hunting for “bargains.” In fact, per a recent account from Reuters, home prices in the city of Changsha have risen 30% in two months all while 13.5mm square meters of residential real estate remains unoccupied.

This post was published at Zero Hedge on Sep 30, 2016.