Tuesday, March 29, 2011

China Bubble Continues to Spread

Third tier cities now involved.
Evergrande's Net Soars on Tertiary Cities
"Given that third-tier cities are generally less affected by the macro adjustment and control policies, the room for urban development is broad and the demand and growth potential for housing are immense," said Chairman Hui Ka-yan.

As of Dec. 31, the group had total land reserves of about 96 million square meters distributed among 62 cities in China, including 21 second-tier cities and 39 third-tier cities.

Just in case you think these companies found some way to make money building affordable housing . . .
Evergrande said it will continue to pursue a development model focused on quickly bringing mid- and high-end housing to market, adding the company put more than 70% of its new development projects up for sale within six months of acquiring the land last year.

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