房地產

‘We now have a bubble in many cities, particularly the big ones'

Chenggong may still be largely empty but it is already attracting the attention of property speculators.

At one of the town's many estate agents, a Mr Xin is eyeing up new apartments. Originally from Wenzhou, the east coast city that is synonymous in China with free-wheeling capitalism, he already owns eight flats at a compound called Huilan Yuan, which had in theory been set aside for civil servants moving to the town, but he is interested in more. “I think it is a good idea to invest now before the property prices in Chenggong start to rocket,” says Mr Xin.

If there is one big idea to come out of the financial crisis, it is that monetary authorities should try to anticipate asset price bubbles, especially in property. China is now a test-case for the theory, given strong indications that the property market is getting close to bubble territory.

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