Wednesday, July 25, 2012

Chinese Property

The Chinese property market is probably more confusing than any other property market in the world.
Some reports argue that things have recovered whilst others suggest that the 'recovery' is a little blip, which can't stop the inevitable decline.

These things matter of course for us here in Australia, because of a little thing called steel (made of coal and iron ore) and a few other resources that we sell to the Chinese.

I am bearish about China over the short to medium term, but I know enough about China to be not certain of anything. 

So for those of you wanting to read a little more I recommend the following:

Where is everyone? The derelict majesty of Chinese ghost town built to house one million, but with less than 30,000 residents

This contains an old story but with some fabulous pictures. Unravelling the future of Ordos will be a fairly important indicator of what happens in China more widely.

For those wanting an analysis of more recent developments may I suggest:

What’s driving China’s real estate rally?

I'm guessing that we need to factor in Ordos into the overall equation, but like the Australian property market, looking at the aggregate picture may not always tell us a bout particular segments of the market.

The jury as they say is still out ...

No comments:

Post a Comment

Please be civil ...