Chinese Land Rush

"Once known for drab, government-controlled housing and ancient courtyard homes, China has become a land of multimillion-dollar apartments and soaring property values. And foreigners are trying to get in on the action. ... Many investors say they have done well. Patty Chen, 53, an American living in Shanghai, says she sold one of her first apartments in the city-a 1,829-square-foot luxury unit downtown--for $600,000 in 2005, almost three times what she paid for it in 2000. ...'New York [real estate] is so high, I missed it,' says Brett Aaron, [Yellowstar Capital LLC] co-founder, a native of New York's Long Island who has lived in Asia for many years. ... Ms. Kalifa of Jones Lang LaSalle says 'People are looking for investment options, and housing is a no-brainer", WSJ, 18 January.

Kalifa said it all. Chinese real estate looks like Los Angeles in 2005, or Hawaii in 1990. Closer to a top than a bottom. The Hawaii story is interesting because Japanese investors began buying Hawaii properties at close to the top of the market.