Thursday, April 5, 2012
China Real Estate Surplus Situation
The real estate housing construction in China has always been outpaced sales. Three years inventory seems to be a norm but now has inched up to 4. The good news is growth rate peaked two years ago.
I tilt my take more on soft landing rather than hard landing as its contribution to overall Chinese economy is still small 12% of GDP, continued demand for housing, strong holding power of retail investors and the most important of all, the Chinese government has taken many measures to shake out excesses slowly.
I believe the Chinese market is one of the cheapest now.............