TV Program Turns Spotlight on China Real Estate

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The CBS news magazine "60 Minutes" focused on the China real estate market Sunday night, adding new insights into the state of the market.

A large chunk of the show centered on the possibility that the real estate market may be headed for a cliff, what the program called "the largest housing bubble in human history." The conclusion may not be surprising, but the reporting brings extensive detail to the extent of the situation.

The report also spotlighted the fascinating story of Zhang Xin, who rose from obscurity to become one of China biggest real estate moguls. She not only found success as a woman entrepreneur in China's rigid society, she built some of Beijing's most dramatic projects, earning a reputation as the "Steve Jobs of the architecture world."

To me, the main question these segments left unanswered is, what will happen to China's property market when millions of "investor owned" condos in these ghost cities recycle back onto the market. Investors will want to exit their investment. They are not end-users. I call this the Boomerang Effect, and it is bound to circle back to hit China's housing market, sooner or later.

Both "60 Minutes" segments can be found below:

China's Real Estate Bubble



Zhang Xin: China's Real Estate Mogul