The global property bubble is hitting epic proportions…
Zero Hedge reports a 65-square-foot one-room apartment in Beijing, China, just listed for $585,000. That’s about $9,000 per square foot.
Yesterday, we highlighted an astronomical price for a “teardown” property in Vancouver, British Columbia. But the property bubble in China’s top-tier cities is even worse…
The U.S. housing market’s biggest bubble cities are New York and San Francisco. Their median prices per square foot are $1,500 (for NYC) and $950 (for SF). China’s top cities’ median price is $500-600 per square foot.
But American median incomes ($59,000 for NYC; $84,120 for SF) dwarf Chinese median incomes ($15,400 in Shanghai). That means China’s price-to-income ratio is far worse…
It’s so bad, Chinese homebuyers have started “crowdsourcing” funds to cover the sky-high prices.
“Investors” get a stake in the buyer’s property and a share of the “gains” upon resale. They’d better hope the sale comes before the bubble bursts…
Bottom line: Bubble cities litter the globe after years of cheap monetary policy. Avoid them. The good news is some U.S. markets still offer attractive rental yields. Use this free resource to find out where.