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China’s top real-estate CEO sees housing bubble, hopes leaders can fix it: report
March 4, 2013, 12:35 AM
China’s property sector took a beating Monday in response to new government measures to take the heat out of the real-estate sector, including a new property capital-gains tax and other disincentives.
However, a report from CBS News “60 Minutes” on some of the issues facing Chinese property developers, probably didn’t do sentiment any favors either.
CBS correspondent Lesley Stahl interviewed Wang Shi, the chairman and founder of China Vanke CN:200002 +3.84% C the biggest property-development firm in China. Some of Wang’s most notable comments were on the affordability of housing and the possibility of an asset-price bubble in the Chinese housing market.
When asked whether homes in China were too expensive, Wang simply answered yes. He told CBS that the average resident trying to buy an apartment in Shanghai would have to pay more than 45 times his or her annual salary.
And when asked if there was currently a bubble in the Chinese property market, he said: “yes of course.”
However, the property developer appears to have faith in the ability of China’s leadership to deal with the situation, saying: “I believe that top leaders have enough smart to deal with that. I hope!”
What exactly those top leaders have in mind could surface as China’s legislature, the National People’s Congress, opens its once-a-year session on Tuesday.
C Sarah Turner
