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Will Real Estate Crash the Chinese Macro Economy?

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There have been a lot of concerns about the Chinese debt which is mostly the consequence of a real estate crisis. The real estate industry is largely responsible for the financial crisis that has hit the financial sector in summer 2015 in China.

Here is an interesting analysis from McKinsey about what are experts call the “Chinese real estate bubble” in most tier-1 and -2 cities. 80% of these cities have experienced a continuous increase in housing prices for at least five years. East and Southern China are the regions where prices have reached the highest level. According to a recent report from McKinsey, prices should keep rising for the coming year.