Investors worry over bubble as Chinese home prices spike

The cost of housing in China’s three largest cities increased dramatically last month, causing people to speculate about government intervention, reports the Financial Times.

Read: Global housing markets heat up

In Beijing, Shanhai and Shenzhen, prices went up 18% or 19% compared to the same time last year. The average price of a home in China went up 8.3%.

The Chinese government introduced measures to slow the rising in housing prices earlier this year. They worked for a time, but the property market has since fully recovered.

Read: China’s recovery fragile, says premier

Along with record-setting prices for land, the signals are worrying some investors and analysts, who think the property market is heading for collapse.

Read more here.

Also read: Inefficient markets leave room for active management

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.