- November 1, 2010: Vol. 2, Number 10

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The “B” Word: Investors in China’s Property Markets Are Beginning to Hear “Bubble”

by Alex Frew McMillan

There have been shockingly large price increases recently for property in mainland China, so there’s heated debate over whether the industry is blowing into a bubble that will inevitably end in a nasty popping sound. If so, can anything prevent that from happening? Or, are fears of a bursting real estate bubble unfounded?

In mid-August, China passed a significant milestone, outpacing Japan to become the second-biggest economy in the world. Its US$1.34 trillion gross domestic product for the second quarter outdid Japan’s US$1.29 trillion for the same period, although Japan clung on as slightly bigger for the first half of the year.

China is sure to wrap up the second spot for 2010, though. And at this rate, China’s annual gross domestic product — pegged at US$4.9 trillion last year — will replace the United States and its US$14 trillion economy as the world’s number one by 2027, according to

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