Chinese billionaire Wang Jianlin issues biggest housing bubble warning

Chinese billionaire Wang Jianlin issues biggest housing bubble warning
Chinese billionaire Wang Jianlin issues biggest housing bubble warning

Chinese billionaire Wang Jianlin has issued a warning on the Chinese property market.

It's the "biggest bubble in history," he told CNNMoney.

The problem, according to Wang, is that prices keep rising in major Chinese metropolises like Shanghai but are falling in thousands of smaller cities where huge numbers of properties lie empty.

"I don't see a good solution to this problem," he said.

"The government has come up with all sorts of measures -- limiting purchase or credit -- but none have worked."

"The problem is the economy hasn't bottomed out," Wang said.

"If we remove leverage too fast, the economy may suffer further. So we'll have to wait until the economy is back on the track of rebounding -- that's when we gradually reduce leverage and debts."

He says he's not worried about the prospect of a "hard landing".

Wang has been warning of trouble in the Chinese property market for a while with his Dalian Wanda Group, which has developed huge malls and office complexes across China, has been gradually cutting back on its real estate business.

His business has key property assets overlooking Sydney Harbour at Circular Quay and on the Queensland Gold Coast.

Wang is the richest man in China, according to Forbes and Hurun Report data from 2015.

Click here to see his full video interview.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

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China Property Bubble

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