Asia property bubble may burst as early as this year

China’s property market is a bubble that may burst by as early as this year, according to hedge fund manager James Chanos.



The world’s third-biggest economy may need to keep up the pace of property investment because up to 60 percent of its gross domestic product relies on construction, said Chanos. The bubble may begin to “run its course” in late-2010 or 2011, he said in an interview on “The Charlie Rose Show” that will air on PBS and Bloomberg TV.

China is “on a treadmill to hell,” said Chanos, who said in January the nation is Dubai times a thousand. “They can’t afford to get off this heroin of property development. It is the only thing keeping the economic growth numbers growing.”
 
Johnlaw2012: Just look at the valuation of asia property you will think they need 3 generations to pay one house which sounds crazy. China may not be Japan but we have not seem a china recession for sometime seem 1995 when Mr Zhu tighten the market. I think it about time for china to has recession like the japanese during 1970.