Analysis of the Chinese property market points to a bubble, but so far government measures are only treating the symptom, not the underlying problem.

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William Marshall,

With respect, I think the four dominant factors noted in your article do not demonstrate the basis for an asset price bubble, but rather indicate a justifiable basis for Chinese real estate appreciation (See China's potent housing cocktail, August 10). High domestic savings suggest lower LVRs, international investment control suggests a greater likely domestic demand for real estate, low ownership and holding costs reduce the likelihood of distressed sales and minimise short-termism, and increased urbanisation suggests ongoing end-user demand.
There is no doubt that the lack of transparency regarding Chinese markets and the Chinese economy generally makes it difficult to deduce the real situation, and the size and complexity of Chinese 'sub-markets' make generalisations dangerous, but the 'evidence' proposed in the article does not support the asserted outcome.