China's Real Estate Bubble Explained

In this video we talk about real estate prices in China which many observers think are in a speculative bubble.

#WallStreetMillenial

[yann]

In Malaysia, there is a certain demographic here that has absurd notions of what a reasonable rate of appreciation for property is. People buy a property for 500k and expect to see the value go up 100% year on year and insist it's totally sustainable. This also contributes to an increase in goods as rental rates skyrocket. The people profiting from the sky high rental then bitch and complaine that cost of living is rising too fast!! People are greedy dicks at the end of the day.

[aaronlim]

As a Malaysian, I can confirm that the Country Garden development in Johor Bahru, Malaysia has been a disaster for the local Malaysian property market too, with property prices inflated to absurd prices within the last decade.

[nathanjackson]

This is happening in Canada right now. It’s absolutely crazy the prices for a home in Canada.

[SchmozzleGTO]

Another excellent post... you're killing it. Love this channel... (hope you stay away from the stock pick stuff- stay clean and making quality like this. I reckon it'll pay better long term...)

[gregc]

There are multiple warnings this last week in all Australian papers from CBA and IMF about house prices here which is very rare. They are very worried, and I know they don't care about individual lenders, only the system. I believe they know something is on the horizon and people are seriously struggling to keep up with repayments.

[patrickcameron]

I’m 3 minutes in and this story sounds exactly like Canada so far. Except for the boom in new construction.

[neil]

Toronto, Canada housing is a bubble as well. In GTA 1700 sqft houses that were $600k in 2017 are now selling for $1.2M. Prices went up abt 35% this year. People are buying multiple houses renting them hoping to cash in from price increase. Many people are just falsifying income documents to get mortgage approval. If government doesn't cool this down somehow I think eventually it's a disaster waiting to happen.

[andyhughes]

The Chinese real estate collapse will also trigger the U.S. housing market to slump.

Here's why:

Chinese investors also bought homes in the U.S. (and other Western markets such as Australia and Canada), which drove up prices in these places beyond local salary also.

Many of these investors must sell their properties here in order to service their debt in China.

A glutload of homes in the West will then be dumped into the market, driving down prices here too.

[JohnWickFour]

Highly consistent quality and informative videos, great work 👏 👍

[tradinglifestlye]

Honestly i started watching for meme purposes. But yall put out actual factual content. That accurate

[lankaat]

Biggest disaster will be Tesla, then bitcoin.

[jerolvilladolid]

It is a rule of physics that everything that goes up, will come down. Before going up again. The US economy which is big had that 2008 financial crisis, the Japanese economy had the 1990 crisis. Only a fool would believe China’s economy is unique and will go up and up and up. Since their liberalization in the 80s they had not yet had an economic crisis. It will happen. We just dont know when. And boy is it going to be epic.

[luciewilliams]

Do you think the real estate bubble could be compared to the 2008 subprime crisis ?

[gabrielalamberti]

I thought the Chinese were not allowed to own anything and mortgages don't exist in China. It's more like an 80 year lease. Did this change?

[WealthGambit]

Great video! There’s no doubt in our minds you’ll reach over a million subscribers ✊🏽

[cloudwalker]

The. Fact that businesses and foreign Corporations are leaving China will only exacerbate the problem

[squirrelbong]

thanks for mentioning the huge pressure by society to buy a house for citizens. I think owning a home ties into their social score as well. This unfortunately shows how over leveraged the citizens might also be in their housing purchases.

[NewYork]

Let all the greedy people collapse, they are not the healthy individuals at all for the society anyway...

[prav]

Thanks man for this video I waited for this one.

[kaalvoetpiet]

Correct decision by Chinese government: Taking the pain now rather than a larger pain in the future. (Frankly, they were slow on this)