Jan 13 2014, 08:46 PM
QUOTE(cranx @ Jan 13 2014, 08:31 PM)
1) certain new developers will go bust, number of developers will reduce.
2) many investors will buy into abandoned projects and cry foul.
3) number of bankruptcies will rise (rate of increase in proportion with the sudden spike of properties price)
whether or not this will cause the bubble burst is yet to be seen.
Developers go burst --> completed units not sold is lelong ---> price sharply down ---> nearby property value
affected ---> nearby property price down ---> speculators with units around the area hold units with lower values ----> speculators can't sell ---> speculators' units lelong ---> ..... ---> bubble burst.
It is a chain of effects. Financial events are seldom isolated. One thing leads to another and another
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