In China, Land Prices Fan Bubble Fears
From Wall Street Journal:
Land prices are on the rise again in China, as easy credit helps reverse last year’s correction but also raises concerns that another bubble could be in the making.
When a property boom in China came crashing to a halt last year, purchases of land by developers for new projects began drying up. But this year, the area of land purchased has risen every month from the previous one. And in recent weeks, as a recovery in housing sales continues to strengthen, property developers are again paying top dollar for empty lots in China’s biggest cities.
Last month, Gemdale Corp., a Chinese residential developer based in the southern city of Shenzhen, surprised the market by paying 3.05 billion yuan ($446.5 million) for a 210,000-square-meter plot in Shanghai’s Qingpu suburb, more than tripling the opening bid.