Chinese real estate figures out on Tuesday show investment in the sector was up 18.9 per cent in October, while property sales soared 48.4 per cent year-to-date.
These sort of figures obviously reinforce fears in the market that an asset price bubble is growing in China.
Here’s RBC Capital Markets on the numbers and cautioning on the risk (our emphasis):
China Real estate data showed continued strong growth, with investment +18.9% y/y YTD in Oct, property sales +48.4% y/y YTD and urban property prices +3.9% y/y. This is further evidence that strong bank lending and easy liquidity conditions are creating an overheated property market. The bulk of the economic data are due tomorrow — the export numbers will be key. Officials are linking the stable CNY policy to the fact that y/y export growth remains negative, and have rejected international pressure to allow currency appreciation. Although Oct exports are rumoured to be below consensus, positive annual growth is likely to return in the next 2-3 months. Once this is apparent, Beijing will be more comfortable in allowing a resumption of CNY appreciation against the USD.
China’s liquid real estate bubble – FT Alphaville
And now for a Chinese real-estate crash? – FT Alphaville
China’s land boom, a datapoint – FT ALphaville
China’s looming credit crisis – FT Alphaville