China's property bubble has burst - report
http://money.cnn.com/2014/05/06/news/economy/china-property-nomura/
An update on the real estate bubble. Personally, I think it's been deflating the past couple of years, but as of recent times, the effects of the pop are becoming more and more evident and dangerous, whereas earlier on in the deflation, the side effects weren't as noticeable.
Riley, Charles. "The China Property Bubble Has Already Burst." CNNMoney. Cable News Network, 06 May 2014. Web. 12 May 2014.
http://money.cnn.com/2014/05/06/news/economy/china-property-nomura/
An update on the real estate bubble. Personally, I think it's been deflating the past couple of years, but as of recent times, the effects of the pop are becoming more and more evident and dangerous, whereas earlier on in the deflation, the side effects weren't as noticeable.
Riley, Charles. "The China Property Bubble Has Already Burst." CNNMoney. Cable News Network, 06 May 2014. Web. 12 May 2014.
Massachusetts High Schools
http://www.usnews.com/education/best-high-schools/massachusetts/rankings?int=982e08
Ranking of the Massachusetts high schools, which includes public and charter.
"Massachusetts High Schools." US News. U.S.News & World Report, n.d. Web. 12 May 2014.
http://www.usnews.com/education/best-high-schools/massachusetts/rankings?int=982e08
Ranking of the Massachusetts high schools, which includes public and charter.
"Massachusetts High Schools." US News. U.S.News & World Report, n.d. Web. 12 May 2014.
City Datahttp://www.city-data.com/
An online database that allows you to look up the basic information of a city. Such information includes average income, demographics, and population count.
"City-Data.com - Stats about All US Cities - Real Estate, Relocation Info, Crime, House Prices, Cost of Living, Races, Home Value Estimator, Recent Sales, Income, Photos, Schools, Maps, Weather, Neighborhoods, and More." City-Data.com - Stats about All US Cities - Real Estate, Relocation Info, Crime, House Prices, Cost of Living, Races, Home Value Estimator, Recent Sales, Income, Photos, Schools, Maps, Weather, Neighborhoods, and More. N.p., n.d. Web. 12 May 2014.
An online database that allows you to look up the basic information of a city. Such information includes average income, demographics, and population count.
"City-Data.com - Stats about All US Cities - Real Estate, Relocation Info, Crime, House Prices, Cost of Living, Races, Home Value Estimator, Recent Sales, Income, Photos, Schools, Maps, Weather, Neighborhoods, and More." City-Data.com - Stats about All US Cities - Real Estate, Relocation Info, Crime, House Prices, Cost of Living, Races, Home Value Estimator, Recent Sales, Income, Photos, Schools, Maps, Weather, Neighborhoods, and More. N.p., n.d. Web. 12 May 2014.
Survey in China Shows a Wide Gap in Income
http://www.nytimes.com/2013/07/20/world/asia/survey-in-china-shows-wide-income-gap.html?_r=0
The income gap in China is an issue concerning the disproportionate ratio of average income to average household price. The average household price is far higher than the average income, resulting in many people being unable to attain affordable housing that is of at least decent quality.
Wong, Edward. "Survey in China Shows a Wide Gap in Income." The New York Times. The New York Times, 19 July 2013. Web. 11 May 2014.
http://www.nytimes.com/2013/07/20/world/asia/survey-in-china-shows-wide-income-gap.html?_r=0
The income gap in China is an issue concerning the disproportionate ratio of average income to average household price. The average household price is far higher than the average income, resulting in many people being unable to attain affordable housing that is of at least decent quality.
Wong, Edward. "Survey in China Shows a Wide Gap in Income." The New York Times. The New York Times, 19 July 2013. Web. 11 May 2014.
What is meant by first tier, second-tier, and third-tier cities?
http://sme.amcham-shanghai.org/faq/what-meant-first-tier-second-tier-and-third-tier-cities
An easy-to-follow explanation regarding the "Tier" system in China. This link explains what dictates a city's tier.
"What Is Meant by First Tier, Second-tier, and Third-tier Cities?" AmCham Shanghai's SME Center. N.p., n.d. Web. 12 May 2014.
http://sme.amcham-shanghai.org/faq/what-meant-first-tier-second-tier-and-third-tier-cities
An easy-to-follow explanation regarding the "Tier" system in China. This link explains what dictates a city's tier.
"What Is Meant by First Tier, Second-tier, and Third-tier Cities?" AmCham Shanghai's SME Center. N.p., n.d. Web. 12 May 2014.
A Chinese housing market crash could be even more disastrous than America’s
http://qz.com/189792/a-chinese-housing-market-crash-could-be-even-more-disastrous-than-americas/
An article on the economics that contribute to the inflated Chinese real estate market and the disaster that will ensue if the market collapsed, which it seems to be on the verge of. With people unwilling to let the bubble deflate, the people are just fueling an even more catastrophic result. It includes graphs regarding the Tier system and house investment and increasing housing prices.
Guilford, Gwynn. "A Chinese Housing Market Crash Could Be Even More Disastrous than America’s." Quartz. N.p., 19 Mar. 2014. Web. 12 May 2014.
http://qz.com/189792/a-chinese-housing-market-crash-could-be-even-more-disastrous-than-americas/
An article on the economics that contribute to the inflated Chinese real estate market and the disaster that will ensue if the market collapsed, which it seems to be on the verge of. With people unwilling to let the bubble deflate, the people are just fueling an even more catastrophic result. It includes graphs regarding the Tier system and house investment and increasing housing prices.
Guilford, Gwynn. "A Chinese Housing Market Crash Could Be Even More Disastrous than America’s." Quartz. N.p., 19 Mar. 2014. Web. 12 May 2014.
China's Ghost Cities
http://www.arbiternews.com/2014/03/19/chinas-ghost-cities/
Laura Sesana's article focuses on Chinese ghost cities. According to this article, construction of ghost cities started around the mid-2000s range and are built in the middle-of-nowhere, as there is a copious amount of land that can be developed into a metropolitan center... so long as people can move there.
Sesana, Laura. "China's Ghost Cities." Arbiter News. N.p., 19 Mar. 2014. Web. 11 May 2014.
http://www.arbiternews.com/2014/03/19/chinas-ghost-cities/
Laura Sesana's article focuses on Chinese ghost cities. According to this article, construction of ghost cities started around the mid-2000s range and are built in the middle-of-nowhere, as there is a copious amount of land that can be developed into a metropolitan center... so long as people can move there.
Sesana, Laura. "China's Ghost Cities." Arbiter News. N.p., 19 Mar. 2014. Web. 11 May 2014.
This '60 Minutes' Video Of China's Ghost Cities Is More Surreal Than Anything We've Ever Seen
http://www.businessinsider.com/60-minutes-chinas-ghost-cities-2013-3
A brief article detailing China's property bubble. This article also includes pictures and a documentary on the bubble and ghost cities.
Badkar, Mamta. "This '60 Minutes' Video Of China's Ghost Cities Is More Surreal Than Anything We've Ever Seen." Business Insider. Business Insider, Inc, 03 Mar. 2013. Web. 12 May 2014.
http://www.businessinsider.com/60-minutes-chinas-ghost-cities-2013-3
A brief article detailing China's property bubble. This article also includes pictures and a documentary on the bubble and ghost cities.
Badkar, Mamta. "This '60 Minutes' Video Of China's Ghost Cities Is More Surreal Than Anything We've Ever Seen." Business Insider. Business Insider, Inc, 03 Mar. 2013. Web. 12 May 2014.
China Property Collapse Has Begun
http://www.forbes.com/sites/gordonchang/2014/04/13/china-property-collapse-has-begun/
This article by Gordon Chang, a Forbes contributor who focuses on Asia and nuclear proliferation, explains the situation China's real estate bubble is in (without too much focus on the ghost cities though). It covers the mechanics of China's real estate market, the state it's in, and some of the economics behind it.
Chang, Gordon G. "China Property Collapse Has Begun." Forbes. Forbes Magazine, 13 Apr. 2014. Web. 12 May 2014.
http://www.forbes.com/sites/gordonchang/2014/04/13/china-property-collapse-has-begun/
This article by Gordon Chang, a Forbes contributor who focuses on Asia and nuclear proliferation, explains the situation China's real estate bubble is in (without too much focus on the ghost cities though). It covers the mechanics of China's real estate market, the state it's in, and some of the economics behind it.
Chang, Gordon G. "China Property Collapse Has Begun." Forbes. Forbes Magazine, 13 Apr. 2014. Web. 12 May 2014.
Interview with Past Clients
Just to put this out there: the following names mentioned in this blurb are fake, as the participants in this interview wished to remain anonymous. That being said, having asked questions regarding when and why an individual/family moved here, their thoughts on a child's education, China's vs. U.S.' education system, and the real estate market in both countries, I have found many overlapping responses.
Xiao Ming moved here in 2005 because she wanted to pursue a higher education in the U.S. She also has children, for whom she and her husband will think about their future and education. She did mention that the real estate bubble was not present in Tier 1 cities, which, now looking at this comment in hindsight, was a tip-off to what else I had to research.
Xiao Tian moved here in 2006. He came because he was a graduate student at MIT. He believes that the education in China is more science/math oriented while in the U.S. it encourages more self-exploration. He too mentioned the Tier system in China and how it factors into the real estate bubble issue.
Xiao Yue moved here in 1995. He sought to attain a Ph. D. He feels that there is a difference between the Chinese and U.S. education systems, though he favors the U.S. system slightly more.
Xiao Lan moved here in 2013. Her husband got a job opportunity to come to the U.S., so that is why she is here now. She sees a difference between the two education systems, but sees each as having their respective strengths and weaknesses (U.S.-creative, but lacks rigor, China-rigorous, but lacks creativity). She believes that the housing bubble in China is crazy and she doesn't see the prices coming down in the near future, not at least without a "fight." She's seen single-family houses cost $10 million in China, so trying to buy one seemed too out of reach for her and too much of a hassle to pursue.
"Interview with Past Clients." Online interview. 2 May 2014.
Just to put this out there: the following names mentioned in this blurb are fake, as the participants in this interview wished to remain anonymous. That being said, having asked questions regarding when and why an individual/family moved here, their thoughts on a child's education, China's vs. U.S.' education system, and the real estate market in both countries, I have found many overlapping responses.
Xiao Ming moved here in 2005 because she wanted to pursue a higher education in the U.S. She also has children, for whom she and her husband will think about their future and education. She did mention that the real estate bubble was not present in Tier 1 cities, which, now looking at this comment in hindsight, was a tip-off to what else I had to research.
Xiao Tian moved here in 2006. He came because he was a graduate student at MIT. He believes that the education in China is more science/math oriented while in the U.S. it encourages more self-exploration. He too mentioned the Tier system in China and how it factors into the real estate bubble issue.
Xiao Yue moved here in 1995. He sought to attain a Ph. D. He feels that there is a difference between the Chinese and U.S. education systems, though he favors the U.S. system slightly more.
Xiao Lan moved here in 2013. Her husband got a job opportunity to come to the U.S., so that is why she is here now. She sees a difference between the two education systems, but sees each as having their respective strengths and weaknesses (U.S.-creative, but lacks rigor, China-rigorous, but lacks creativity). She believes that the housing bubble in China is crazy and she doesn't see the prices coming down in the near future, not at least without a "fight." She's seen single-family houses cost $10 million in China, so trying to buy one seemed too out of reach for her and too much of a hassle to pursue.
"Interview with Past Clients." Online interview. 2 May 2014.
China GDP slows to 7.4% in first quarter
http://money.cnn.com/2014/04/15/news/economy/china-gdp/
CNN covers current economics in China (in this case, as of April 15, 2014, which appears to be a common date for other sources to check China's GDP growth). This source includes some numbers on China's GDP growth.
Yan, Sophia. "China GDP Slows to 7.4% in First Quarter." CNNMoney. Cable News Network, 15 Apr. 2014. Web. 8 May 2014.
http://money.cnn.com/2014/04/15/news/economy/china-gdp/
CNN covers current economics in China (in this case, as of April 15, 2014, which appears to be a common date for other sources to check China's GDP growth). This source includes some numbers on China's GDP growth.
Yan, Sophia. "China GDP Slows to 7.4% in First Quarter." CNNMoney. Cable News Network, 15 Apr. 2014. Web. 8 May 2014.
Google: China's GDP Growth Rate Graph
https://www.google.com/publicdata/explore?
This application on Google allows us to see China's GDP growth -- the program is even interactive in that you can scroll over a year (on the x-axis) to see the exact GDP growth %.
"China, GDP Growth Rate." World Development Indicators - Google Public Data Explorer. N.p., n.d. Web.
https://www.google.com/publicdata/explore?
This application on Google allows us to see China's GDP growth -- the program is even interactive in that you can scroll over a year (on the x-axis) to see the exact GDP growth %.
"China, GDP Growth Rate." World Development Indicators - Google Public Data Explorer. N.p., n.d. Web.
China GDP Annual Growth Rate
http://www.tradingeconomics.com/china/gdp-growth-annual
A simple graph depicting China's GDP growth rate over the past few years.
"China GDP Annual Growth Rate." TRADING ECONOMICS. N.p., n.d. Web. 10 May 2014.
http://www.tradingeconomics.com/china/gdp-growth-annual
A simple graph depicting China's GDP growth rate over the past few years.
"China GDP Annual Growth Rate." TRADING ECONOMICS. N.p., n.d. Web. 10 May 2014.
Interview with Xiao Yu
In this interview, I asked Xiao Yu the same questions as I had asked William (below). Xiao Yu's answers were more brief, but had the same premise as William's answers. He was also able to cover his views of children's well-being in terms of real estate.
Yu, Xiao. "Interview with Xiao Yu." Telephone interview. 31 Mar. 2014.
In this interview, I asked Xiao Yu the same questions as I had asked William (below). Xiao Yu's answers were more brief, but had the same premise as William's answers. He was also able to cover his views of children's well-being in terms of real estate.
Yu, Xiao. "Interview with Xiao Yu." Telephone interview. 31 Mar. 2014.
Interview with William Chen
A phone interview with William Chen, a graduate student at Northeastern University. I asked a variety of questions, such as the reason why he came to the U.S., his views of U.S. and Chinese education, and the real estate market. He also brought up the Chinese government, mentioning that the people just want to be happy, so the form of government does not matter so long as the government can do its job well. Also, the U.S. has the appeal of the American Dream.
Chen, William. "Interview with William Chen." Telephone interview. 31 Mar. 2014.
A phone interview with William Chen, a graduate student at Northeastern University. I asked a variety of questions, such as the reason why he came to the U.S., his views of U.S. and Chinese education, and the real estate market. He also brought up the Chinese government, mentioning that the people just want to be happy, so the form of government does not matter so long as the government can do its job well. Also, the U.S. has the appeal of the American Dream.
Chen, William. "Interview with William Chen." Telephone interview. 31 Mar. 2014.
China seen surpassing U.S. in superpower shift
http://money.cnn.com/2013/07/18/news/economy/china-us-superpower/
This article basically covers China's decline of GDP growth (despite the number not being drastically low), its economy's worrisome state should the GDP not make a positive turn-around, and how China, through all of its economic issues, still has the potential to surpass the U.S. and become the world's Number One economic superpower.
Riley, Charles. "China Tipped to Surpass U.S. as Top Superpower." CNNMoney. Cable News Network, 18 July 2013. Web. 07 May 2014.
http://money.cnn.com/2013/07/18/news/economy/china-us-superpower/
This article basically covers China's decline of GDP growth (despite the number not being drastically low), its economy's worrisome state should the GDP not make a positive turn-around, and how China, through all of its economic issues, still has the potential to surpass the U.S. and become the world's Number One economic superpower.
Riley, Charles. "China Tipped to Surpass U.S. as Top Superpower." CNNMoney. Cable News Network, 18 July 2013. Web. 07 May 2014.
Asia's Rise in the 21st Century by Scott MacDonald and Jonathan Lemco
Scott MacDonald and Jonathan Lemco collaborate to give readers insight on China's economy and its place in the world economy. In this book, much insight was provided on China's GDP growth rate (up until 2007), allowing me to understand what led up to the recent reliance on the real estate market.
MacDonald, Scott B., and Jonathan Lemco. "Chapter Three: The Rise of China."Asia's Rise in the 21st Century. Santa Barbara, CA: Praeger, 2011. 47+. Print.
Scott MacDonald and Jonathan Lemco collaborate to give readers insight on China's economy and its place in the world economy. In this book, much insight was provided on China's GDP growth rate (up until 2007), allowing me to understand what led up to the recent reliance on the real estate market.
MacDonald, Scott B., and Jonathan Lemco. "Chapter Three: The Rise of China."Asia's Rise in the 21st Century. Santa Barbara, CA: Praeger, 2011. 47+. Print.
China economic growth slows to 18-month low in first-quarter
http://www.reuters.com/article/2014/04/16/us-china-economy-gdp-idUSBREA3F04J20140416
Reuters, a news site that focuses on business and finance, focuses on the economic slowdown in China. According to
this article, China's economy's growth rate has slowed to the point where the country is starting to worry about the economy's demise. Although the growth rate was at a pretty high 7.4%, China can't really reverse this decline: it's something that the country struggles to deal with.
Rose, Adam, and Xiaoyi Shao. "China Economic Growth Slows to 18-month Low in First-quarter." Reuters. Thomson Reuters, 16 Apr. 2014. Web. 8 May 2014.
http://www.reuters.com/article/2014/04/16/us-china-economy-gdp-idUSBREA3F04J20140416
Reuters, a news site that focuses on business and finance, focuses on the economic slowdown in China. According to
this article, China's economy's growth rate has slowed to the point where the country is starting to worry about the economy's demise. Although the growth rate was at a pretty high 7.4%, China can't really reverse this decline: it's something that the country struggles to deal with.
Rose, Adam, and Xiaoyi Shao. "China Economic Growth Slows to 18-month Low in First-quarter." Reuters. Thomson Reuters, 16 Apr. 2014. Web. 8 May 2014.
A bubble in pessimism, The Economist
http://www.economist.com/news/china/21583691-chinas-economy-inefficient-it-not-unstable-bubble-pessimism
An article focusing on China's economic evolution and growth, A bubble focuses on how when the country's GDP started to decline, labor started to become more and more expensive. Yes, many factory workers come from the countryside looking for a job opportunity in the cities, but as of late, that demographic is starting to vanish. As a result, China has to adjust, something it's struggled with. However, pretty recently, China might have just struck a balance in which it can change its economic format and still continue growing.
"A Bubble in Pessimism." The Economist. The Economist Newspaper, 17 Aug. 2013. Web. 6 May 2014.
http://www.economist.com/news/china/21583691-chinas-economy-inefficient-it-not-unstable-bubble-pessimism
An article focusing on China's economic evolution and growth, A bubble focuses on how when the country's GDP started to decline, labor started to become more and more expensive. Yes, many factory workers come from the countryside looking for a job opportunity in the cities, but as of late, that demographic is starting to vanish. As a result, China has to adjust, something it's struggled with. However, pretty recently, China might have just struck a balance in which it can change its economic format and still continue growing.
"A Bubble in Pessimism." The Economist. The Economist Newspaper, 17 Aug. 2013. Web. 6 May 2014.
China's Rise: Challenges and Opportunities by Charles Freeman, Nicholas Lardy, and Derek Mitchell
Charles Freeman, Nicholas Lardy, and Derek Mitchell contributed to book China's Rise: Challenges and Opportunities. This book focuses on various aspects of China, such as economy, politics, and labor. For my research, I am using it to understand the Chinese economy and figure out how the sporadic economy lead up to the creation of the property bubble.
Freeman, Charles, Nicholas R. Lardy, and Derek J. Mitchell. "Chapter One: China's Challenge to the Global Economic Order." China's Rise: Challenges and Opportunities. By C. Fred Bergsten. Washington, DC: Peterson Institute for International Economics, 2008. 10+. Print.
Freeman, Charles, Nicholas R. Lardy, and Derek J. Mitchell. "Chapter Six: Sustaining Economic Growth in China." China's Rise: Challenges and Opportunities. By C. Fred Bergsten. Washington, DC: Peterson Institute for International Economics, 2008. 105+. Print.
Charles Freeman, Nicholas Lardy, and Derek Mitchell contributed to book China's Rise: Challenges and Opportunities. This book focuses on various aspects of China, such as economy, politics, and labor. For my research, I am using it to understand the Chinese economy and figure out how the sporadic economy lead up to the creation of the property bubble.
Freeman, Charles, Nicholas R. Lardy, and Derek J. Mitchell. "Chapter One: China's Challenge to the Global Economic Order." China's Rise: Challenges and Opportunities. By C. Fred Bergsten. Washington, DC: Peterson Institute for International Economics, 2008. 10+. Print.
Freeman, Charles, Nicholas R. Lardy, and Derek J. Mitchell. "Chapter Six: Sustaining Economic Growth in China." China's Rise: Challenges and Opportunities. By C. Fred Bergsten. Washington, DC: Peterson Institute for International Economics, 2008. 105+. Print.
Chinese paying cash for US homes
http://usa.chinadaily.com.cn/2013-07/11/content_16762336.htm
This article touches on how Chinese buyers are dominating our market nowadays. Many are able and willing to pay in cash for properties that have a hefty price tag attached to them while others are focusing on trying to learn about and understand the U.S. real estate market. By the end of the article, the reasons behind this new hike of buyers is touched upon: "[The Chinese] mostly purchase US property for three reasons: to have another asset out of China, because they have a child going to school in the US, or for business."
Jia, Chen. "Most Viewed." Chinese Paying Cash for US Homes|Home|chinadaily.com.cn. N.p., 11 July 2013. Web. 12 May 2014.
http://usa.chinadaily.com.cn/2013-07/11/content_16762336.htm
This article touches on how Chinese buyers are dominating our market nowadays. Many are able and willing to pay in cash for properties that have a hefty price tag attached to them while others are focusing on trying to learn about and understand the U.S. real estate market. By the end of the article, the reasons behind this new hike of buyers is touched upon: "[The Chinese] mostly purchase US property for three reasons: to have another asset out of China, because they have a child going to school in the US, or for business."
Jia, Chen. "Most Viewed." Chinese Paying Cash for US Homes|Home|chinadaily.com.cn. N.p., 11 July 2013. Web. 12 May 2014.
Where Are Foreigners Buying Real Estate in the United States
http://www.creditsesame.com/blog/where-are-foreigners-buying-real-estate-in-the-united-states/
This is an interactive map that allows you to scroll over each state and see which nation dominates the foreign buyers market in that particular state. This was mentioned in the Forbes article posted below.
"Credit Sesame Daily." Credit Sesame Where Are Foreigners Buying Real Estate in the United States Comments. N.p., n.d. Web. 11 May. 2014.
http://www.creditsesame.com/blog/where-are-foreigners-buying-real-estate-in-the-united-states/
This is an interactive map that allows you to scroll over each state and see which nation dominates the foreign buyers market in that particular state. This was mentioned in the Forbes article posted below.
"Credit Sesame Daily." Credit Sesame Where Are Foreigners Buying Real Estate in the United States Comments. N.p., n.d. Web. 11 May. 2014.
Chinese To Spend Billions On American Real Estate
http://www.forbes.com/sites/kenrapoza/2013/07/10/chinese-to-spend-billions-on-american-real-estate/
Kenneth Rapoza is a Forbes Magazine contributor who covers Brazil, India, and China. In his article titled Chinese To Spend Billions On American Real Estate, he mainly touches upon where the Chinese dominate the foreign buyer facet of the real estate market. China dominates a jaw-dropping 44 states, claiming a spot in the top 5 nationalities buying into the U.S. real estate market. China is taking advantage of a great investment opportunity because they know that the U.S. is coming out of a foreclosure crisis, so now is a good time to strike. However, the U.S. is not the only country starting to feel China's presence: Canada is starting to notice a hike in Chinese buyers in their market as well. We'll have to wait and see what China will do in the future. Overall, this article confirms that there is a huge hike in Chinese buyers in the U.S. real estate market. However, it mainly focuses on buyers who have deep pockets.
Rapoza, Kenneth. "Chinese To Spend Billions On American Real Estate."Forbes. Forbes Magazine, 10 July 2013. Web. 11 May 2014.
http://www.forbes.com/sites/kenrapoza/2013/07/10/chinese-to-spend-billions-on-american-real-estate/
Kenneth Rapoza is a Forbes Magazine contributor who covers Brazil, India, and China. In his article titled Chinese To Spend Billions On American Real Estate, he mainly touches upon where the Chinese dominate the foreign buyer facet of the real estate market. China dominates a jaw-dropping 44 states, claiming a spot in the top 5 nationalities buying into the U.S. real estate market. China is taking advantage of a great investment opportunity because they know that the U.S. is coming out of a foreclosure crisis, so now is a good time to strike. However, the U.S. is not the only country starting to feel China's presence: Canada is starting to notice a hike in Chinese buyers in their market as well. We'll have to wait and see what China will do in the future. Overall, this article confirms that there is a huge hike in Chinese buyers in the U.S. real estate market. However, it mainly focuses on buyers who have deep pockets.
Rapoza, Kenneth. "Chinese To Spend Billions On American Real Estate."Forbes. Forbes Magazine, 10 July 2013. Web. 11 May 2014.
China Can't Afford to Let Its Housing Bubble Pop
http://www.bloombergview.com/articles/2014-01-30/china-can-t-afford-to-let-its-housing-bubble-pop
William Pesek is a Bernard M. Baruch College-City University of New York graduate and Bloomberg columnist. Based in Tokyo, Japan, Pesek's pieces have been published and featured in newspapers worldwide, including the Sydney Morning Herald, Japan Times, and New York Post. Pesek has also earned various awards for his writing, such as the "Writers prize for commentary." In his article China Can't Afford to Let Its Housing Bubble Pop, Pesek reviews how China's real estate predicament has to end at some point, but when it does, it will wreak havoc on the Superpower. Of course, China wants to prevent such a devastating pop, so the government, headed by President Xi Jinping, is just making the bubble bigger to keep people happy and China running: "China’s social compact is simple: We raise your living standards and you don’t head to Tiananmen Square with protest banners" (Pesek). With people who are on the younger end of the aging spectrum (early-mid-20 year olds to early 30-somethings) demanding better and more affordable housing (due to poor conditions of more affordable property) and people who are in (at least) China's developing middle class demanding more property to invest in, it is sometimes hard to tell which party the government is trying to please.
Pesek, William. "China Can't Afford to Let Its Housing Bubble Pop."BloombergView.com. Bloomberg View, 30 Jan. 2014. Web. 2 Apr. 2014.
http://www.bloombergview.com/articles/2014-01-30/china-can-t-afford-to-let-its-housing-bubble-pop
William Pesek is a Bernard M. Baruch College-City University of New York graduate and Bloomberg columnist. Based in Tokyo, Japan, Pesek's pieces have been published and featured in newspapers worldwide, including the Sydney Morning Herald, Japan Times, and New York Post. Pesek has also earned various awards for his writing, such as the "Writers prize for commentary." In his article China Can't Afford to Let Its Housing Bubble Pop, Pesek reviews how China's real estate predicament has to end at some point, but when it does, it will wreak havoc on the Superpower. Of course, China wants to prevent such a devastating pop, so the government, headed by President Xi Jinping, is just making the bubble bigger to keep people happy and China running: "China’s social compact is simple: We raise your living standards and you don’t head to Tiananmen Square with protest banners" (Pesek). With people who are on the younger end of the aging spectrum (early-mid-20 year olds to early 30-somethings) demanding better and more affordable housing (due to poor conditions of more affordable property) and people who are in (at least) China's developing middle class demanding more property to invest in, it is sometimes hard to tell which party the government is trying to please.
Pesek, William. "China Can't Afford to Let Its Housing Bubble Pop."BloombergView.com. Bloomberg View, 30 Jan. 2014. Web. 2 Apr. 2014.
CNN: China's property bubble stalls the urban dream
http://edition.cnn.com/2014/02/25/business/nanjing-real-estate/
CNN is known for having an abundant amount of information on China's contemporary shenanigans, and the real estate bubble is not an exception. In this article, it's been found that the stock market of China is not as reliable as the real estate market, which has been steadily growing. However, this market has grown beyond many people's buying abilities, so there is a lot of investment and construction going on, but no one is buying the new properties that are being built to satisfy the demands of the people.
"I do not deny that the real estate industry has corruption" (Yang Weize). This phrase's meaning has permeated through Chinese society; there are even peaceful, if strange, protests, such as a man voicing his opinion on the market via holding six crabs, each having a sticker with a couple words on them (i.e. high housing prices). The way corruption hides in the real estate market is by a) having housing prices so high that only people with a lot of money or have good connections can afford/obtain these houses and b) local governments (district authorities) auctioning off land at high prices, forcing the central government to purchase said land for a high price, creating a ripple effect that causes a huge price hike in the real estate market. As a result, the end product is unaffordable to most people.
Soares, Isa. "China's Property Bubble Stalls the Urban Dream." CNN. Cable News Network, 26 Feb. 2014. Web. 29 Mar. 2014.
http://edition.cnn.com/2014/02/25/business/nanjing-real-estate/
CNN is known for having an abundant amount of information on China's contemporary shenanigans, and the real estate bubble is not an exception. In this article, it's been found that the stock market of China is not as reliable as the real estate market, which has been steadily growing. However, this market has grown beyond many people's buying abilities, so there is a lot of investment and construction going on, but no one is buying the new properties that are being built to satisfy the demands of the people.
"I do not deny that the real estate industry has corruption" (Yang Weize). This phrase's meaning has permeated through Chinese society; there are even peaceful, if strange, protests, such as a man voicing his opinion on the market via holding six crabs, each having a sticker with a couple words on them (i.e. high housing prices). The way corruption hides in the real estate market is by a) having housing prices so high that only people with a lot of money or have good connections can afford/obtain these houses and b) local governments (district authorities) auctioning off land at high prices, forcing the central government to purchase said land for a high price, creating a ripple effect that causes a huge price hike in the real estate market. As a result, the end product is unaffordable to most people.
Soares, Isa. "China's Property Bubble Stalls the Urban Dream." CNN. Cable News Network, 26 Feb. 2014. Web. 29 Mar. 2014.
Real-estate bubble seen bursting in China, US: Experts
http://usa.chinadaily.com.cn/business/2013-11/12/content_17096663.htm
China Daily is an English-written Chinese newspaper based in China. According to China Daily, any slowdown in China's real estate market will be detrimental to the companies that provide supplies for that market (i.e. construction). With China's growing and flourishing economy, it is hard to detect when the real estate bubble will pop. Some think that with the improving economy the bubble is not going to pop and that the issue will, in a way, sort itself out. Others think that China's bubble will pop in ten years (as of this article, nine as of this year) and subsequently bring down the US' real estate market due to their investment in our commercial property deals.
Barris, Michael. "Real-estate Bubble Seen Bursting in China, US: Experts." China Daily USA. China Daily USA, 12 Nov. 2013. Web. 04 Mar. 2014.
http://usa.chinadaily.com.cn/business/2013-11/12/content_17096663.htm
China Daily is an English-written Chinese newspaper based in China. According to China Daily, any slowdown in China's real estate market will be detrimental to the companies that provide supplies for that market (i.e. construction). With China's growing and flourishing economy, it is hard to detect when the real estate bubble will pop. Some think that with the improving economy the bubble is not going to pop and that the issue will, in a way, sort itself out. Others think that China's bubble will pop in ten years (as of this article, nine as of this year) and subsequently bring down the US' real estate market due to their investment in our commercial property deals.
Barris, Michael. "Real-estate Bubble Seen Bursting in China, US: Experts." China Daily USA. China Daily USA, 12 Nov. 2013. Web. 04 Mar. 2014.
CNN: China's crazy property bubble
http://edition.cnn.com/2013/11/07/business/china-property-bubble/
A CNN article on Chinese investment in real estate. Since the economy was unstable, real estate seemed like a more reliable approach. However, living in one of those newly built houses is out of reach for most Chinese because the property prices are still too expensive (despite the low construction quality). Overall, real estate is a relatively trustworthy investment, despite it being a sort of dead-end action, and by dead-end, I mean investment in real estate is deceivingly good, but with no home buyers, the benefits are lacking post-construction. At this point, the Chinese are in a tight spot, as popping the bubble will result in economic chaos.
Chiou, Pauline. "China's Crazy Property Bubble." CNN. Cable News Network, 08 Nov. 2013. Web. 04 Mar. 2014.
http://edition.cnn.com/2013/11/07/business/china-property-bubble/
A CNN article on Chinese investment in real estate. Since the economy was unstable, real estate seemed like a more reliable approach. However, living in one of those newly built houses is out of reach for most Chinese because the property prices are still too expensive (despite the low construction quality). Overall, real estate is a relatively trustworthy investment, despite it being a sort of dead-end action, and by dead-end, I mean investment in real estate is deceivingly good, but with no home buyers, the benefits are lacking post-construction. At this point, the Chinese are in a tight spot, as popping the bubble will result in economic chaos.
Chiou, Pauline. "China's Crazy Property Bubble." CNN. Cable News Network, 08 Nov. 2013. Web. 04 Mar. 2014.
Interview with Margie Kern
I discussed the reasons behind why there is a surge of Chinese buyers in the U.S. real estate market with Margie Kern, an amazing realtor for Sotheby's International Realty. She pointed to job opportunity, education, and investment opportunity as the main components, with China's government corruption as an extremely minor component that has little to know meaning compared to the previously stated components.
Kern, Margie C. S. "Interview with Margie Kern of Sotheby's International Realty." Personal interview. 17 Feb. 2014.
I discussed the reasons behind why there is a surge of Chinese buyers in the U.S. real estate market with Margie Kern, an amazing realtor for Sotheby's International Realty. She pointed to job opportunity, education, and investment opportunity as the main components, with China's government corruption as an extremely minor component that has little to know meaning compared to the previously stated components.
Kern, Margie C. S. "Interview with Margie Kern of Sotheby's International Realty." Personal interview. 17 Feb. 2014.
The End of Cheap China by Shaun Rein
The End of Cheap China is a book that focuses on the changes China made within its society, government, and business strategies to become one of today's economic superpowers. Shaun Rein, a graduate of Harvard's Graduate School of Arts and Sciences and founder and Managing Director of the China Market Research Group, an organization that "advises Fortune 500 companies, private equity firms, and hedge funds about profiting in China," is both the author and the narrator of the book. He has been to China on different occasions. In the prologue, he visited in 1998, before China was revered as a world superpower. Throughout the rest of the book, he observes the changes China made by 2010-2012. Rein's inside look on China allows for an interesting read from a different perspective, one that's not as biased as, say, James Fallows of the Atlantic Monthly.
So what does the End of Cheap China have anything to do with the psychology of the Chinese buyer in the U.S. real estate market? Well, Rein touches upon government corruption, business strategies, and even China's real estate issue, all of which might be driving forces behind so many Chinese families making the big move to the U.S.
Rein tries to be as well informed as possible when identifying the different kinds of government corruption, acknowledging the difference between the corruption of the local officials and the central government. In Chapter Six, Understanding Corruption in China: What China's Underground Sex Trade Shows About Its Government, Rein focuses on how local officials easily become corrupt due to low salary and an understandable (but still poorly executed) motivation to provide for the best for their families. Keep in mind that the central government is not exempt from corruption, Rein just wants to be levelheaded when talking about corruption in China. Moving on, has the corruption in China contributed to increasing prominence of relatively affluent Chinese buyers in an American real estate market? After some discussion with my mom, who is very well informed on the topic of all things real estate (after all, she is a real estate broker), corruption, though significant, is not the immediate driving force behind the sudden increase of Chinese buyers. Some people might come over to the U.S. and get a taste of freedom, leading up to a desire for more freedom and, ultimately, a migration from a freedom-lacking place like China to the U.S.
So if corruption isn't the Number One motivation for Chinese buyers to invest in the U.S. real estate market, what is? It's actually the lack of stability in China's own real estate market. China's living quarters for the average citizen was, and still is for the most part, sub-par. The complexes had many floors, each apartment being about 300 square feet with, usually, at least two people to cover the rent (one room per apartment, not including a small bathroom). In other cases, employees may be provided housing by their employers, but the living quarters are even more cramped, with a few people to a room about 300 square feet or less. Fair living quarters, let alone houses, were available to only the wealthy. I speak in past tense here, but a lot of these facts remain true today, though China has started to work on this problem.
Let's put things into perspective. Today, the average income of younger Chinese adults (say 20s-30s) is about $300 a month while the average apartment rent is $400 a month. Here, it's easy to see why multiple people often live together: the ratio of apartment rent to individual's income is disproportionate. Rule of thumb (in a perfect world) is one week's income should be equal to one month's rent. Paired with the limited square footage, it's easy to see why the average living quarters are unsatisfactory. As a result, there is a huge demand for better, more affordable housing. Long story short, the real estate market's significance rose. Many wealthier Chinese saw this as a great opportunity for investment, leading to an increase in building projects with the projected outcome that several people will quickly fill the new homes, making a win-win situation in that the people are happier with their better housing and the investors have huge success. The investment seems fail proof! But in all actuality, the new living quarters end up being too expensive for the people who are demanding better housing to afford, ultimately leading to the formation of a ghost town, a complex of houses ready for people to move in, but is completely empty instead. In an effort to try to make the real estate market work, investors and builders try to lower the quality of the houses to make them more affordable and allow themselves to earn a healthy profit. Overall, China's real estate market, though in theory was a great idea, is a dud. However, the American real estate market is much more stable. As a result, it's easy to see why Chinese investors turn to our market for a more reliable outcome.
Rein, Shaun. The End of Cheap China: Economic and Cultural Trends That Will Disrupt the World. Hoboken, NJ: John Wiley & Sons, 2012. Print.
The End of Cheap China is a book that focuses on the changes China made within its society, government, and business strategies to become one of today's economic superpowers. Shaun Rein, a graduate of Harvard's Graduate School of Arts and Sciences and founder and Managing Director of the China Market Research Group, an organization that "advises Fortune 500 companies, private equity firms, and hedge funds about profiting in China," is both the author and the narrator of the book. He has been to China on different occasions. In the prologue, he visited in 1998, before China was revered as a world superpower. Throughout the rest of the book, he observes the changes China made by 2010-2012. Rein's inside look on China allows for an interesting read from a different perspective, one that's not as biased as, say, James Fallows of the Atlantic Monthly.
So what does the End of Cheap China have anything to do with the psychology of the Chinese buyer in the U.S. real estate market? Well, Rein touches upon government corruption, business strategies, and even China's real estate issue, all of which might be driving forces behind so many Chinese families making the big move to the U.S.
Rein tries to be as well informed as possible when identifying the different kinds of government corruption, acknowledging the difference between the corruption of the local officials and the central government. In Chapter Six, Understanding Corruption in China: What China's Underground Sex Trade Shows About Its Government, Rein focuses on how local officials easily become corrupt due to low salary and an understandable (but still poorly executed) motivation to provide for the best for their families. Keep in mind that the central government is not exempt from corruption, Rein just wants to be levelheaded when talking about corruption in China. Moving on, has the corruption in China contributed to increasing prominence of relatively affluent Chinese buyers in an American real estate market? After some discussion with my mom, who is very well informed on the topic of all things real estate (after all, she is a real estate broker), corruption, though significant, is not the immediate driving force behind the sudden increase of Chinese buyers. Some people might come over to the U.S. and get a taste of freedom, leading up to a desire for more freedom and, ultimately, a migration from a freedom-lacking place like China to the U.S.
So if corruption isn't the Number One motivation for Chinese buyers to invest in the U.S. real estate market, what is? It's actually the lack of stability in China's own real estate market. China's living quarters for the average citizen was, and still is for the most part, sub-par. The complexes had many floors, each apartment being about 300 square feet with, usually, at least two people to cover the rent (one room per apartment, not including a small bathroom). In other cases, employees may be provided housing by their employers, but the living quarters are even more cramped, with a few people to a room about 300 square feet or less. Fair living quarters, let alone houses, were available to only the wealthy. I speak in past tense here, but a lot of these facts remain true today, though China has started to work on this problem.
Let's put things into perspective. Today, the average income of younger Chinese adults (say 20s-30s) is about $300 a month while the average apartment rent is $400 a month. Here, it's easy to see why multiple people often live together: the ratio of apartment rent to individual's income is disproportionate. Rule of thumb (in a perfect world) is one week's income should be equal to one month's rent. Paired with the limited square footage, it's easy to see why the average living quarters are unsatisfactory. As a result, there is a huge demand for better, more affordable housing. Long story short, the real estate market's significance rose. Many wealthier Chinese saw this as a great opportunity for investment, leading to an increase in building projects with the projected outcome that several people will quickly fill the new homes, making a win-win situation in that the people are happier with their better housing and the investors have huge success. The investment seems fail proof! But in all actuality, the new living quarters end up being too expensive for the people who are demanding better housing to afford, ultimately leading to the formation of a ghost town, a complex of houses ready for people to move in, but is completely empty instead. In an effort to try to make the real estate market work, investors and builders try to lower the quality of the houses to make them more affordable and allow themselves to earn a healthy profit. Overall, China's real estate market, though in theory was a great idea, is a dud. However, the American real estate market is much more stable. As a result, it's easy to see why Chinese investors turn to our market for a more reliable outcome.
Rein, Shaun. The End of Cheap China: Economic and Cultural Trends That Will Disrupt the World. Hoboken, NJ: John Wiley & Sons, 2012. Print.