Opinion: If China’s Property Bubble Bursts, South Africa Will Feel It
From IndependentOnline. Story by Roy Cokayne.
The possible bursting of a Chinese property bubble together with weakness in other areas of the Chinese economy has “significant potential implications” for South Africa’s residential property market, FNB warned on Thursday.
John Loos, the household and property sector strategist at FNB, said the potential impact is not seen to be a direct one via any major withdrawal of Chinese investment in the South African residential property market, but rather an indirect one via the impact on China’s economy and therefore on South Africa’s own economy and the finances of the household sector.
Rather than Greece’s financial crisis, Loos said he believes that what happened in China’s housing market along with other areas of its troubled economy is “the big news to South Africa’s economy and thus its own residential market at present.”
Read more at IndependentOnline.