Comments by "Winston Smith" (@kryts27) on "Defaults Trigger Property Sell-Off, Shanghai Housing Prices Plunge 25%, Economy Loses Key Driver" video.

  1. It's interesting that in China, the majority of real estate in first and second level tier cities is investment property, not property for iving in (except before, tenants). Now, that investment has collapsed, spectacularly,and the prices keep heading South. For how long? Probably for months or years. Australia is going to mirror this effect in China about a year later, of course although not as severely. People who have bought houses in the last 5 to 10 years here are losing investment value with record high interest rates., particularly in Sydney and Melbourne. Like Shanghai, Australia's ultra high housing prices in these cities is unsustainable with growth of salaries, except notably in the very rich. None if this is good news for either the government's of China or Australia, and unlike Australia, the government does not have to win a popularity content to get voted back in China, in which real estate issues are a political factor. However, even as a single party state, the CCP loses legitimacy over this issue. Shedding Xi Jinping as leader (voluntarily or involuntarily) is unlikely to fix this issue of a housing crises with the CCP, as China dives into demographic decline.
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