The slowing Chinese economy is a receiving a much needed boost in the form of the property market beginning to bounce back. New York Times staffer Neil Gough reports on the rise of the property market which makes up an estimated quarter of China's gross domestic product.
However some fear that this growth, concentrated in China's wealthiest markets, will be too narrow to be sustainable as it will not outgrow the oversupply of unsold homes:
The sharp price increases make it difficult for policy makers to justify further economic stimulus. They also raise the risk that the government could face complaints from urbanites getting priced out of the housing market.
“People living in major cities increasingly find property prices unaffordable,” said Raymond Yeung, China economist at the Australia and New Zealand Banking Group.