“China’s real-estate market seems to have reached a turning point,” says Zhu Haibin of JP Morgan. In June, prices fell in 55 of the largest 70 cities, compared to 35 in May. And in July, prices dropped in 64 cities, the worst monthly reading since records began in 2005.
Developers are retreating from new investments and floor space sold in July fell sharply from June.
It’s little wonder – China’s property bubble has been off the scale. Land prices have gone up fivefold since 2008. Shanghai’s house-price-to-income ratio has hit an incredible 22. In just two years [...]