so that one person could be treated as an independent buyer to avoid taxes. Demand is so fervent in Shanghai that developers are requiring cash deposits of $30,000 just to enter a lottery to buy a new apartment. A recent plot of land in Shanghai sold for $2,000 per square foot, more than double the average price for dirt in Manhattan.
Chinese officials know risks posed by a property bubble, but some economists are concerned the government is not moving fast enough to slow it down, according to the Times.
“The risk is that the government is late in cooling the market, the rally spreads to more areas, pushing up household leverage and construction activity, pushing the bubble bigger, which is then followed by a bigger downward correction,” Tao Wang, the head of China economics at UBS in Hong Kong, told the paper.
Last month, economists at Bank of China warned the market is heading for trouble. The same week, Wang Jianlin , CEO of Dalian Wanda Group, warned that China’s market is now facing the “biggest bubble in history.”
The average house price in Shanghai is up nearly one-third compared to a year ago. Major cities like Beijing and Guangzhou are no爱上海同城