Enough Wealth

Hugh Hendry on China – The Emperor Has No Clothes

I wouldn't care to guess. In theory, all the vacancy (and more) will be used up as China's massive rural population continues to urbanise and the economys' industrial revolution continues for the next couple of decades.

Then again, if the GFC impacts China's real economy too much (ie. the expected domestic demand isn't sufficient to keep the economy growing strongly enough the create all the new jobs required to urbanise the rural population and lift living standards) then there will be massive oversupply and a Japan-like property valuation crash.

I've no idea how China's GDP growth will turn out over the next few years. But if the current growth that is due largely to Chinese government stimulus spending trails off, things could get ugly very fast.