One of the main things that economic gurus like me look out for as a danger sign of a bubble is people saying 'this time it's different.' Here, be still your beating hearts, is a feature on house prices in Beijing. I might not have clicked on the link had this blog's Beijing correspondent not described the bubbly nature of Chinese real estate over library coffee a couple of week's ago. Some highlights:
Despite the fear of a bubble here, Mr. Tong said his prices were just right, particularly because of so much hidden wealth in China...Hmm. I wonder what a sales agent at Tomson Riviera would have to gain from... But I'll stop. The Chinese government is nervous, but it's making a fortune from the sales, and we can all use all the fortunes we can get, even if we are the Chinese government. I'm sure everything will be fine.
Tomson’s prices are soaring. The most recent apartment sold for about $2,300 a square foot. The average luxury apartment in Manhattan sold for just under $1,900 a square foot in the fourth quarter of 2009, according to Prudential Douglas Elliman real estate.
Indeed, for the price of a Tomson apartment in Shanghai, a buyer could easily purchase a 6,000-square-foot home in Los Angeles built by Frank Lloyd Wright and now for sale ($10.5 million), or a 52-acre site with a 22-room residence in New Canaan, Conn. ($24 million).
But a sales agent at Tomson Riviera says this is the future financial capital of the world, not the dying one
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