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The Chinese Real Estate Bubble

Author

Listed:
  • Smith, Gary

    (Pomona College)

  • Liang, Wesley

    (Pomona College)

Abstract

China has seen extraordinary economic growth for the past two decades, coupled with a booming housing market. Following the 2008 financial crisis, however, observers began worrying that the Chinese real estate market had been gripped by a speculative bubble. We use residential rent and price data to assess whether these fears are justified. We conclude that residential real estate markets are bubbly in Beijing and Shanghai, with the Beijing housing market frothier than the Shanghai market.

Suggested Citation

  • Smith, Gary & Liang, Wesley, 2019. "The Chinese Real Estate Bubble," Economics Department, Working Paper Series 1002, Economics Department, Pomona College, revised 04 Jun 2019.
    • Handle: RePEc:clm:pomwps:1002
    as

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    File URL: https://scholarship.claremont.edu/cgi/viewcontent.cgi?article=1002&context=pomona_fac_econ
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    References listed on IDEAS

    as
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    6. Wei, Shang-Jin & Zhang, Xiaobo & Liu, Yin, 2017. "Home ownership as status competition: Some theory and evidence," Journal of Development Economics, Elsevier, vol. 127(C), pages 169-186.
    7. Jing Wu & Yongheng Deng & Hongyu Liu, 2014. "House Price Index Construction in the Nascent Housing Market: The Case of China," The Journal of Real Estate Finance and Economics, Springer, vol. 48(3), pages 522-545, April.
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    Keywords

    China real estate; housing bubble;

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