Is Chinese Real Estate Bubble in Trouble?

Is the Chinese real estate bubble starting to implode?

I read this from Mish's Global Economic Trend Analysis and thought it's worth sharing. He was quoting the Australian Macro Business Blog:

"Top Tier Chinese Cities Discounting Property; Beijing Prices and Volume Down 11 Straight weeks
Posted: 25 Apr 2014 02:03 PM PDT

The Australia Macro Business Blog notes Tier 1 Chinese Cities Discounting Property
Prices and volumes are falling in Beijing and real estate agents are started to drum up sales by delisting homes listed at high prices. Lots of homes listed online now show price cuts, and volumes have picked up recently from depressed levels. Total listings are down about 50% in some parts of Beijing due to listings being removed.

Online Prices Falling Everywhere; Real Estate Agents Cut Prices 30% (????????????????????????????????????????????????? ???????????????????????????????????????????????????????????????????????????????????)
“Two weeks ago the price fell 200,000 yuan,” “6 hours ago the price fell 100,000 yuan,” …… Yesterday, the sites of real estate companies show homes in the east, south and west Third Ring large area, about thirty percent of listings are marked with The green arrow indicates the listings with price cuts have almost quadrupled since the period before Spring Festival. Such a situation from two weeks since the beginning of April, the city is currently at this largest second-hand housing sales real estate agent are starting to tell homeowners who ask for high listing prices, “no.” Every home exceeding the average price for the area is being persuaded one by one to cut their asking price, otherwise they will be removed from the website, “off the shelf.”

Reporter survey found that many hot spots in the district, real estate agencies have taken as much as 40% of the properties off the market, resulting in an eyeful of lower prices online.
In Guangzhou, developers only paid a premium of 1.4% on the “star plots” at a recent government land auction. In Beijing, prices and volume have been sliding for 11 straight weeks.

Mish says: "Hugh Pavletich posted the following links as comments to the above article:"

Housing projects in China in limbo due to debt-ridden developers— ,a href="http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140423000091&cid=1202">Link

Does China's Q1 GDP Figure Rule Out A Hard Landing?Link

New Zealand’s Bubble Economy Is VulnerableLink

What will be the repercussion felt around the world if this continues? Nothing like socialist central planning to get it wrong. If they build it they will come…. if we force them or if we built the right thing or if we didn't get things wrong or if we didn't have a one child policy that is reducing our population, etc.

See also:

The Demographic Cliff: A WarningLink

The Population Crash is Destroying the Global EconomyLink

What Happens When the Population Falls?Link

China's Lending Bubble a Global ThreatLink

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