Crash can be avoided despite China's property bubble

ONE of the bright spots in the Chinese economy this year has been the fast recovery of the housing market.

Nationwide house sales rose nearly 30 per cent for first eight months, and the average house price gained more than 7 per cent.

While supportive of economic growth and general sentiment, the red-hot market has fuelled renewed talk of a property bubble and prompted some local governments to reinstate policy tightening.