Some experts have reported as much as 20% increases in property prices in major Chinese cities like Beijing, Shenzhen, Shanghai and Guangzhou and many who believe those reports are calling it a potentially disastrous real estate bubble. U.S. investors have taken note and talking heads have been seen arguing about it in the news, but other analysts say that even if the rate increases are true, the Chinese government has the power to manage the threat caused by a bubble. Since the Chinese government still enforces residency restrictions in its cities it means it could easily control prices by letting more people in, or keeping people out. For more on this continue reading the following article from TheStreet.
The state of the Chinese real estate market recently caught the attention from U.S. investors, as highlighted by the recent CBS "60 Minutes" report.
And the debate can get pretty emotional quickly, with charges of treason thrown in no less, as shown in this disastrous talking-past-each-other "debate" between two professors on CNBC.