China real estate market has become the “biggest bubble in history.”

Chinese billionaire Wang Jianlin told CNN Money Thursday that the real estate market of the country has become "the biggest bubble in history."

source http://www.breitbart.com/national-security/2016/10/02/chinese-real-estate-biggest-bubble-history-says-real-estate-billionaire/

"I do not see a good solution to this problem. The government has developed all kinds of measures - limit the purchase or credit - but none have worked, "warned Wang. His own investment group was changing resource properties, and in entertainment, sports and tourism - including evidence acquire Hollywood studio Legendary Entertainment, Carmike Cinemas cinema chain, and can -be soon Dick Clark Productions. CNN noted his great dream is to buy one of the studios "Big Six" of cinema, such as 20th Century Fox and Universal Pictures. The problem with China's real estate, as Wang sees, is that too many properties in small towns are unoccupied, while prices of major cities are skyrocketing, which creates a lot of consumer debt - about $ 3600000000000 in US dollars. He thinks that the Chinese economy is still too weak for the collapse of the stock market last year to deal with the debt bubble.

 "China has a love-hate relationship with the real estate market. Recently, he tried to cool the overheated market in large cities with restrictions on home sales, even to punish the realtors that the market hype "reports Business Insider.



"Yet government efforts did not slow the market much, with property sales growing 31.8% in August compared to a year ago." Back in April, Forbes speculated that China's housing bubble did not burst because the government maintains tight controls on the market, using any regulations for interest rates to handle the construction and commercial real estate. A key feature of the Chinese market is that "the conditions that caused the US housing crash in 2008 simply does not exist in China, things like subprime mortgages and securities backed by mortgages are either prohibited or are otherwise not widespread. " This is because the Chinese home buyers must make huge down payments - 30 percent for a first home, up to 50 percent for a second, and it can be even higher when the government wants to cool the housing market down. Qualifying for a loan can be very difficult. In fact, citizens are actually considered "buyers" or "non-buyers" and only by meeting certain requirements, such as paying tax on income in a particular area for several years, can a "non- buyer "become a" buyer ". It is interesting that the American left, who admires so resolutely Chinese authoritarianism in many other social and economic areas, remains committed to the idea that "social justice" is equal to easy loans, and the increase in property evoke prosperity of thin air. In any case, Wang appears to disagree with the assertion of Forbes that the Chinese market is immune to burst the bubble, or at least cushioned against the effects. The Chinese stock market collapse was supposed to be impossible, too.

Real Estate Agency here.