The social cost of the property frenzy may occupy the minds of most Chinese. But policymakers and economists are also worried about the financial implications.
The property market is built on debt – developers have borrowed money to build; purchasers have taken on loans to buy.
Some are alarmed about the size of the debt.
“We saw this in the US leading up to 2008,” says Eric Schmidt, the chief executive of a Beijing-based multinational and a regular financial commentator on state TV.
“The government is really trying to make it easy for anybody to get loans in order to purchase new houses, new cars, whatever it may be.”
China’s outstanding debt stands at 250% of GDP – two and a half times the size of its annual economic output – a level that is worrying some.
“I’m certainly concerned with where debt levels are right now. GDP numbers haven’t been looking great, so new loans have been issued a lot over the past six to nine months,” says Mr Schmidt.