Turkey’s housing collapse is resembling China
This video advances a very bold proposal: Turkish housing market is beginning to collapse irreversibly; and factors behind it are increasingly resembling those of China. The exposition consists of four sections and a bonus.
The state of play in the Chinese housing-cum-property development industry: Why it will get worse, adding to weak consumption, bad loans in banks and the global concern about China’s rapidly expanding export capacity.
The resemblances between Chinese crisis and the onset of Turkey’s housing collapse: Let’s start with the erroneous conviction that eventually triggered every financial crisis in history: The price of something will go up forever, and move on to other subtle aspects which bear resemblance.
The evidence that Turkey’s housing collapse has started: In April real prices declined first time in over five years.
Why is this process irreversible? It will take at least three years to find a bottom.
Now, the unique and peculiar aspect of Tukey’s real estate woes: The urgency of urban renewal, or earthquake proofing physical structures across the nation.
The bonus: Demographics of China and Turkey which may render house price deflation permanent.
For more;
www.paturkey.com
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