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0 pointsseanmcdirmid11y ago0 comments

Many of the foreign-owned houses are actually bought by corrupt Chinese officials and business men planning their exit from a country that will probably eventually execute them if they stay.

The corruption crackdown forces the money out precisely because the time of reckoning draws nearer, while many more honest Chinese also see overseas markets as a value compared to over inflated domestic markets. Actually, if housing gets cheaper here in China (which it should), you'll see more activity here and less activity abroad for the same reason.

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muzz11y ago

Good point-- one of the assumptions of increasing supply is that the demand will remain roughly the same. The demand curve may be so steep that even large increases in supply will be bought up and not lower prices much.

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