Concerns over the highest vacancy rate in the world and a cooling economy dealing with a trade war has sparked concerns of an impending bubble in the Chinese housing market. A recent report from China’s largest state-backed investment banks has forecasted that 2019 could be a “year of recession” in the sector. One of the largest developers has also stated that “survival” is the company’s goal for the next three years due to an upcoming “turning point” in the sector. An estimated 50 million homes are unoccupied, many of which were built as investments. While some have predicted that this pressure will force the Chinese government to give in to US demands in the ongoing trade war, a director at the Center for Strategic and International Studies argues that “we’re going to see these two sides continue to dig in their heels – both sides still think they have the upper hand.”
Source: Property bubble fears rise as China struggles with trade war | Asia Times
