{"id":19342,"date":"2016-07-11T15:45:45","date_gmt":"2016-07-11T08:45:45","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/has-china-put-itself-at-risk-of-a-real-estate-bubble\/"},"modified":"2016-07-11T15:50:03","modified_gmt":"2016-07-11T08:50:03","slug":"has-china-put-itself-at-risk-of-a-real-estate-bubble","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/has-china-put-itself-at-risk-of-a-real-estate-bubble\/","title":{"rendered":"Has China put itself at risk of a real estate bubble?"},"content":{"rendered":"


\nThe Chinese government are hopeful they will inspire the next Jack Ma, but at what cost?
\nExperts warn of a potential \u201cextremely large\u201d property bubble in China. Image credit: Asgeir Kolberg (Flickr)
\nAmid a quest to make way to the next Alibaba, China\u2019s property market could be placing itself in a credit-fuelled property bubble.
\nThe Chinese government has been aggressively funding the establishment of innovation centres to incubate the next big success story in start-ups. However, a majority of these incubators only have occupancy rates of 40 percent and below, according to internet research firm iiMedia, as told to Reuters.
\nSome experts believe the surfeit of these start-up spaces may be indicative of an \u201cextremely large\u201d risk of a property bubble.
\nThere will be almost 5,000 innovation centres in the country within five years, iiMedia projected. However, many are situated in small Chinese cities, with not enough talent, suppliers, and amenities to justify their creation.
\nOverall, home prices have risen in tier-one cities around the country, despite an overall economic slump. In the city of Shenzhen, prices have risen 46 percent since the start of 2015.
\nMore: Sorry, no more strange buildings in China
\nShenzhen is one of five cities, the others being Beijing, Guangzhou, Shanghai and Zhuhai, that are most attractive for Chinese start-ups, Reuters reported.
\nNearly 80 percent of the funding for the innovation centres comes from the government or state-owned universities.
\nTo keep the economy from completely derailing in the short term, China\u2019s central bank has drastically eased credit policy, making access to mortgages wider than ever. In 2014, the central bank\u2019s interest rate was cut to its lowest level yet.
\nIn May, Chinese banks issued CNY985.5 billion (USD149 billion) in yuan loans, an increase of CNY84.7 billion (USD12.6 billion) from a year earlier. This increase was led by a surge in mortgages, with long-term loans standing at CNY528.1 billion (USD78.8 billion).
\nMeanwhile, China\u2019s repayment burden is mounting to a third of its gross domestic product (GDP). The debt-to-GDP ratio in the country now stands at almost 260 percent.
\nBillionaire investor George Soros has opined that China\u2019s debt-ridden economy resembles that of the US at the advent of the 2007-2008 financial crisis.<\/p>\n

Read next: Asian investors will hurt the most from Brexit, experts warn
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\nSource : property-report.com
\nRead more…Has China put itself at risk of a real estate bubble?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Chinese government are hopeful they will inspire the next Jack Ma, but at what...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-19342","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-51Y","jetpack-related-posts":[{"id":42285,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/our-top-10-china-stories-from-the-year-of-the-monkey\/","url_meta":{"origin":19342,"position":0},"title":"Our top 10 China stories from the Year of the Monkey","date":"January 30, 2017","format":false,"excerpt":"\r Living to tell a rambunctious year for real estate Fireworks over Hong Kong\u2019s Victoria Harbor from Tsim Sha Tsui promenade on January 1, 2017. 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The city\u2019s residential property has the highest price-to-income among the 18 financial hubs surveyed in the annual UBS\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":97518,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/shopping-centres-are-thirsty-for-bubble-tea-shops-which-pay-high-rents\/","url_meta":{"origin":19342,"position":2},"title":"Shopping centres are thirsty for bubble tea shops \u2014 which pay high rents","date":"September 9, 2018","format":false,"excerpt":"\r Retailers selling yogurt, Japanese ice cream or cheesecake treats once were the major driver of leasing demand for tiny shops in prime locations. Now it\u2019s bubble tea\u2019s turn. 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Image credit: jareed (Flickr) First, it was Jeju Island, now Chinese investors are\u00a0zoning\u00a0in on Seoul. Investors from China\u00a0scooped up 3,516 plots of land in the South Korean capital in the first quarter of 2016, a two-fold increase from\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":32515,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/what-bubble-experts-say-extreme-distortions-in-supply-demand-are-driving-up-home-prices-in-beijing-and-shanghai\/","url_meta":{"origin":19342,"position":5},"title":"What bubble? Experts say extreme distortions in supply-demand are driving up home prices in Beijing and Shanghai","date":"November 1, 2016","format":false,"excerpt":"\r Beyond all the talk of cooling down the credit-driven housing bubble in China, experts say the situation in the nation\u2019s largest cities still comes down to basic supply-and-demand mathematics. 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