As has been detailed in many prevous articles on www.emergingmoney.com, many market gurus think global real estate is weak and headed one way — especially in China.
A recent article in Bloomberg Businessweek pointed out the shaky foundation of the Chinese real estate market. The Economist projects another 50% decline in real estate prices around the world.
Rather than take any pundit’s word for it, some traders are looking with their own eyes.
One popular Youtube video features China’s ghost cities and malls.
Granted, these may not be XIN projects or even those owned by companies in the TAO portfolio. But if there is already so much empty housing and commercial stock, the prospects of a sustainable “building boom” look a little thin.