Condos under construction in Guangzhou.
Slices of Light / flickr

For years analysts have warned of a looming real estate bubble in China, but the predicted downturn, the bursting of that bubble, never occurred -- that is, until now. In a telling scene two months ago, Shanghai property developers started slashing prices on their latest luxury condos by up to one-third. Crowds of owners who had recently bought apartments at full price converged on sales offices throughout the city, demanding refunds. Some angry investors went on a rampage, breaking windows and smashing showrooms. 

Shanghai homeowners are hardly the only ones getting nervous. Sudden, steep price reductions are upending real estate

This article is part of our premium archives.

To continue reading and get full access to our entire archive, you must subscribe.

Subscribe