China property market recovery may be unsustainable

The South China Morning Post reports land prices in mainland Chinese cities continue to soar despite efforts by some city governments to cool down the market. Property analysts said the rapid recovery in the country’s housing market may not be sustainable partly because the credit profile of developers has not improved. Developers have been competing for land amid a mainland Chinese property recovery, pushing up land prices to record high levels, especially in the first and second tier cities which face limited new supply. The latest record-breaking deal was seen in Hangzhou, with the price paid being the equivalent of RMB 21,576 ($3,278) per square meter.