GEOG 457 Lecture Notes - Lecture 7: Household Debt, Gateway Cities, Canadian Dollar
Document Summary
Chinese housing market: volatile: gateway cities(tier 1) cities have been subjected to growing bubbles. Central government uses property market as way to regulate economy. Makes purchase easier, heating up and cooling down development of a bubble. Property cycle: prices go up and down: but at certain stage: move from normal cycle to cycle of boom and bust. What fuels bubbles: rapid global circulation of capital. Funds can be speedily invested in and also withdran from. 1980"s deregulation of banking brought on global competiotin and facilitated access to cross border funds. National banking went global: this facilitated access to investment capital on a global scale, since 2000, credit for investment has ben abundant and cheap. Real estate has become favoured asset because in many places it remains cheap, and with the right location returns are good, especially when local currencies are devalued. Property is also a relatively easy long-distant asset to manage with the services of a local rental manager.
