HONG KONG -- China is at risk of hosting the next enormous housing bubble. That is the refrain from a growing number of observers as prices of homes and land soar to levels that far exceed the peak of the country's previous property boom in 2007, buoyed by relentless demand and monetary easing.
In October, China witnessed the fastest pace of growth in new home prices since records began in 2011 -- at 12% on the year. The latest statistics showed that top-tier cities like Shanghai and Shenzhen saw price increases of over 30% from a year ago. This was despite tightening measures rolled out in 20 cities across the country to cool the market by raising the level of down-payments and banning the purchase of second homes.
