China's Housing Boom Fizzles

Home sales have come to a near standstill in Shanghai, whose 20 million residents account for two percent of China's population, but 20 percent of the country's property value.

1 minute read

March 14, 2006, 11:00 AM PST

By David Gest


"Once one of the hottest markets in the world, sales of homes have virtually halted in some areas of Shanghai, prompting developers to slash prices and real estate brokerages to shutter thousands of offices.

For the first time, homeowners here are learning what it means to have an upside-down mortgage -- when the value of a home falls below the amount of debt on the property. Recent buyers are suing to get their money back. Banks are fretting about a wave of default loans."

Sunday, March 5, 2006 in The Los Angeles Times

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