Sep 2, 2014

China’s housing bubble is bursting — and Australia should be very worried

Australia depends on the Chinese housing market for more than just iron ore and steel -- our entire economy will feel the shock waves of China's property bubble bursting.

Michael Sainsbury — Freelance correspondent in Asia and <em>Little Red Blog</em> Editor

Michael Sainsbury

Freelance correspondent in Asia and Little Red Blog Editor

An office building in Kunming is demolished to make way for a new business centre development.

Things are grim in Kunming, capital of China’s vast southern province of Yunnan. Not so very long ago, Kunming was a pleasant provincial university city with relatively fresh mountain air. But over the past decade it has suffered the same fate as hundreds of Chinese cities: it’s been bulldozed and built up into one of China’s vast megacities, with a population of 8 million or more. It’s now China’s designated hub for its extraction of the wealth of resources in mainland south-east Asia: oil and gas, minerals, precious stones and hydro-electricity.

Free Trial

Proudly annoying those in power since 2000.

Sign up for a FREE 21-day trial to keep reading and get the best of Crikey straight to your inbox

By starting a free trial, you agree to accept Crikey’s terms and conditions


Leave a comment

2 thoughts on “China’s housing bubble is bursting — and Australia should be very worried

  1. JennyWren

    I am so happy I have divested all of my superannuation away from fossil fuels! Although Abbott’s intention may be to gut the RET Australia is not the only country investing in renewables and may my super dollars follow them. Particularly after this little gem just got tweeted:


  2. Nicholas

    Richard Vague built an immense fortune in the credit card business. Recently he hired a team of economists to help him study the features of all financial meltdowns in major economies in the two hundred year history of industrial capitalism. He found that on nearly every occasion when a major economy had a 150 percent or higher private debt to GDP ratio, and growth in this ratio of 18 percentage points or more over a five year period, a financial meltdown followed. And on nearly every occasion when a major economy had a financial meltdown, these two conditions existed. No other conditions appear anywhere near as consistently in the history of major economy financial crises. China satisfies both conditions now. The book is called The Next Economic Disaster.

    Australia’s private debt to GDP ratio is 120 percent.

Share this article with a friend

Just fill out the fields below and we'll send your friend a link to this article along with a message from you.

Your details

Your friend's details