If the Chinese economy were to suffer a nasty accident over the next few years, it is likely that housing will be at the bottom of it.
Given the underlying demand for housing, it might seem surprising even to entertain the prospect of a bubble developing. Every year, between 10m and 15m rural people migrate to cities – a pattern that is likely to be repeated for the next decade at least.
On top of that, there is huge potential demand from the existing urban population. Although some 70 per cent of city residents own their homes, a large chunk of those people still live in the former state-owned flats they were allowed to buy cheaply from the late 1990s. Many are eager to upgrade to one of the newer tower blocks springing up across the country.