Property bubble building in China

So far during this global recession, Beijing has moved quickly to pump billions into the economy to keep it flowing. Their rescue plan was focused on modifying the export based economy into an inward looking economy while the global recession passes. To a large degree it's worked. Exports are down, obviously, but the government has managed to keep growth at a relatively high level though maybe not as high as required to keep up with the always heavy influx of new workers.

Their own stimulus may be running out of gas and it's highly probably they will need to act again because it's wishful thinking to believe Western consumers will come back in the near term. China has the money to invest internally but still, it's a stress and a radical change from the export bubble economy.

Is China's real estate recovery real?

While housing sales in many parts of the world remain lethargic, sales volumes in China have rebounded strongly.

The pace of sales in some cities has been frenetic. In Guangzhou, first-hand residential transactions rose 108.2 percent in April over year-earlier figures.

In Shanghai, overall sales rose 65.5 percent in April, which included a growth of 77.8 percent in residential sales.

While the average price of housing in 70 major cities continued to fall by 1.1 percent year-on-year in April, it increased 0.4 percent over March.

China's real estate index up in May

BEIJING, June 10 (Xinhua) -- China's national real estate climate index was 95.94 in May or 1.18 points up from April, the National Bureau of Statistics (NBS) said Wednesday.

Prices of new and existing homes in 70 large and mid-sized Chinese cities fell 0.6 percent year on year in May, but prices rose 0.6 percent month on month, said the NBS.

The real estate climate index has six sub-indices, including property development, capital source and the area of land developed.

The property market is growing when the index is above 100 and falling when it drops below 100.