Rents have been going up, but not as much as housing. An apartment that rents for 10k RMB/month will cost 7 million RMB to buy (about $1 million usd), that is just an insane rent to purchase ratio. We foreigners don’t need to buy anyways, and find rents even in Shenzhen quite reasonable. Anyone who bought after 2011, or maybe even 2006, will feel the pain, but at least it will be market based.
You are right that it will depend on if they take their losses themselves or force the people to take it. But they really can’t handle that much worker unrest, I’m sure they’ll eat it, or better yet, have a corruption campaign and get their political enemies to take most of the losses (then it will depend on who has power when the bubble pops).
You are right that it will depend on if they take their losses themselves or force the people to take it. But they really can’t handle that much worker unrest, I’m sure they’ll eat it, or better yet, have a corruption campaign and get their political enemies to take most of the losses (then it will depend on who has power when the bubble pops).