Surprise! Sky High Real Estate Prices Can Crash—Even In The Red Ponz1

Recently, China Evergrande Group, the country’s second largest developer by sales, slashed the price of unsold units by 30 percent in its new condo tower, Future City, in Yueyang of Hunan Province. Angry customers who had purchased units before the price drop and now demanded a refund were beaten up by hired thugs…..In the first half of this year, more than 270 real estate companies in China went bankrupt. Market research companies estimate that the number of bankruptcies in China’s real estate sector may exceed 500 by the end of this year, and most of them will be small to medium-sized real estate companies.