There are mini-statistics that speak volumes about the problems of an economy, and one of them is the drop in home sales in the Chinese capital during one of the crucial periods for the real estate market: the three-day holiday at the turn of the year . Home sales in Beijing are down 60% from a year ago - the lowest level in a decade.
In fact, a real estate bubble was underway in China, and it's no surprise: an economy that is growing at rates close to the double digits brings millions of people every year into the income range that allows them to think about buying a house. The deflation of the bubble is underway, but it shouldn't have the deleterious effects that the similar deflation had in America, given that China has not had the excesses (subprime mortgages) recorded in the United States.
http://usa.chinadaily.com.cn/china/2012-01/04/content_14380156.htm
