China’s Real Estate Bubble

Source: CBC News – China’s real estate bubble

It’s easier to build a house than build a family. It’s easier to construct houses than grow a community. It’s easier to raise a building than create business activity. It’s easier to erect blocks of buildings than create a financial center. To build a physical building, you would just need to get the paperwork done, find the money to engage construction, landscaping and design experts to get it done.In today’s world where endless paper currencies are created by world central banks, getting money to start building is the least difficult.

To breathe life into physical buildings, people will have to buy the developers’ idea that concrete and steel will become bustling and livable space. Corporations will have to believe that it makes economic sense to rent an office space there. Amenities, transportation and other infrastructure must come in to ensure that people occupying the space are adequately taken care of. During a property boom where the masses are sold on the premise of always rising property prices, it’s always the easiest part for developers to buy large pieces of land to build and tout the properties as the next big thing that property buyers should not miss.

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