Capital Intensive China

Property doom and gloom overblown?

  • Published 15 Jul 2010

Gloom over property is spreading. With no sign of easing on the policy side, should we be worried about a double dip led by the construction industry?

We have maintained that we believe the current downtrend in the real estate market to be a temporary adjustment following last year's overly zealous rally, and not a slump. In our May 20 issue, we reported that real estate prices had already started to fall and predicted that this was likely to continue, but would not be so intense as to trigger another downturn (see CC May 20 Big Call).

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