Is there a property bubble and is it about to burst? According to the National Bureau of Statistics prices in 70 major cities rose 10.7% year-on-year in February.
Qin Xiaomei, chief researcher with property firm Jones Lang LaSalle Beijing said, "Despite the government’s tightening policies, it will take some time for the sizzling property sector to cool down, as developers are still awash with cash from last year’s sales boom."
Officials are trying to reduce the risk of asset bubbles, resurgent inflation and bad loans for banks after flooding the world’s fastest-growing economy with cash to drive a recovery.
English People Daily reported Premier Wen Jiabao warned of "latent risk" in banks and pledged to crack down on property speculation in a speech to the country’s annual parliamentary meeting in Beijing last week.