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by bobthepanda
1440 days ago
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Well, there is evidence in China that the current system is super over-leveraged. Evergrande and a few other developers have gone bust and left these pre-sold apartments unfinished. So now the people who bought real estate of any kind are getting spooked, and this is basically a bank run, but on real estate. The Great Recession was bad, but all those houses existed. Which seems a bit better than this present failure scenario. --- As far as affordability, price to income ratio in Shenzhen is 36:1, as opposed to the highest house price to income ratio in the US being LA at 13:1. China is in an unaffordability class of its own. |
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