Sure looks like it. I can’t say that I have followed the China Real Estate Market very close (and I don’t intend to either…), but I think this is interesting… Mainly because the possible size and scope.
I don’t think this will have any impact on our market unless of course it is large enough to create global economic troubles, and if that is the case then all markets will be effected..
China’s overheated real estate market is showing signs of correction. With a glut of overpriced, vacant residential real estate on their hands, many large developers in Beijing have been offering steep discounts recently, even 60 percent. But the developers may be taking a hard hit, Chinese experts say, as they are sitting on a mountain of debt, according to a recent report.
The mid-term report of China’s 98 real estate development companies that are listed on the stock market showed that they have an average debt to equity ratio of 62 percent–with 40 of them exceeding 70 percent–and a total combined debt of 1.01 trillion yuan (US$158.3 billion), far exceeding their revenue growth.