SHANGHAI, March 5 (UPI) -- The current real estate boom being enjoyed in China could result in a collapse that could have devastating implications for the world's economy, experts say.
The New York Times said Thursday there are concerns the positive real estate trends in China are indicative of a growing real estate bubble that will eventually burst and create fallout that could impact China and other countries' economies.
"By all the traditional measures, like rental yield, this is a bubble," independent analyst Andy Xie said of China's positive real estate trends.
The Times said thanks to being the fastest-growing large economy, China is currently helping itself and other countries out of the worldwide recession.
Real estate experts said a flurry of real estate purchases in Chinese cities like Shanghai have prompted increased property costs. In 2009 alone, sales in China of residential property increased by 80 percent compared to 2008.
The Times said the Chinese government is attempting to stop the real estate bubble from bursting by making it difficult for homeowners to obtain second mortgages and by limiting credit used for development projects.
