China property bubble worries


There are growing fears that China’s property bubble, driven by speculation, could be bursting and the country could be on the verge of a property-led slump.

The implications could be worrying for other economies. The bubble could be of similar magnitude to the housing crisis in the United States.

See this Financial Times video.

Low interest rates. People buying property to speculate. Government trying to rein in credit.

Any similarities there?

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Henry Yap
Henry Yap
26 Oct 2011 12.01pm

BBC World Service last nite (25 Oct) on its Business Daily program reported why a hi-tech brain drain could scupper Malaysia’s plans to become the Silicon Valley of the East.

You can download the podcast (in MP3, within the next 30 days) on

under the heading:
“Pensions and printing money 25 Oct 11”

Many graduates from the multimedia university are aiming to work overseas because of the discriminatory policy in Malaysia, leading to brain drain.

25 Oct 2011 11.04pm

Very possible, Oral Submission on Sodomy II on Nov 24/25. The verdict out within a week.
So, DSAI (could go) in by Nov 30, no stay of execution, no Bail. 10 days for elections campaigning.
Hopefully Penang, Kedah, Selangor and Kelantan should not dissolve the State Assembly.

25 Oct 2011 6.04pm

Rumour has it that Najib will bubar parliment on 11 Nov 2011 an set election date on 10 Dec 2011. He is pantang that 2012 is bad for BN.

Let’s vote out BN before we usher in 2012.

25 Oct 2011 4.39pm

I’ve been to one of China’s weird “Ghost Cities” – huge developments build from scratch, impressive, empty or near empty. It has all the signs of a bubble, and like all bubbles it will burst, eventually. China’s economic growth is now quite broad based – exports, domestic consumption, infra-structure construction, and yes, property. I doubt it will cause a widespread overall slump though it will definitely hurt those closely linked to that sector. America’s crisis was fundamentally caused by financial institutions chasing greedy profits by lending further and further down to people who had no means to pay back those… Read more »

25 Oct 2011 3.31pm

Let it bubble in Penang and tumble all the high properties and condo and teach all these developers a lesson while I wait to pick it up.

25 Oct 2011 8.58pm
Reply to  Yang

My millionaire friends are waiting!
And they don’t need new-Bob hair-styled property gurus for advice.
Just watch out for rainy green horned speculative gurus coming out of Love Lane with loud speaker proclaiming ‘good news’ in 2012 ( a sign of imminent property market you know what).

Time for my Kopi-O kau kau Orang Kampung for sanity of thoughts, down to earth lifestyle of simplicity.

25 Oct 2011 1.55pm

Penang Property especially the condo in excess of RM500K above are the risky lot. Landed properties are still a better investment.

Watch out for lelong sale of Condos on Penang Island going into 2012 when weak world economy together with Malaysia high national debt are very likely to bring down the euphoria for more reasonable pricings.

25 Oct 2011 12.43pm

We should not worry for China. Their government is capable to resolve the issue. We should worry more for our domestic problem. Back at Bolehland, the AG report somehow did not alert Anil to start a discussion on those perennial wastage by government agencies. From the report by Auditor General for the past years, we could add up those blatant leakages and abuse of power (cover up with euphemism to call it ineffiency or incompetency) of all those issues and findings highlighted…already several billions! The Auditor General office did not carry out full scale audit as these are just some… Read more »

27 Oct 2011 2.09pm
Reply to  Hasmawi

The Chinese in China, Hong Kong and Taiwan are resilient.
We should not worry for them.

I am more concern of bangsa 1malaysia (the bumiputera of course) that is so dependent on tongkat NEP. Of course most of them are not worried becos of the feel-good move by Najib that has blinded them of the future of our nation – going high debt instead of high income.