China’s Housing Bubble Wobble
ByRegulators struggle to manage an uneven boom.
A man looks as residential buildings stand in the distance in the Jiading district of Shanghai on April 11.
Earlier this year, Mr. and Mrs. Cai, a couple from Shanghai, decided to end their marriage. The rationale wasn’t irreconcilable differences or even mild disagreements; rather, it was a property market bubble in China’s financial hub. The pair, who operate a clothing shop, wanted to buy an apartment for 3.5 million yuan ($519,000), adding to a couple of places they already owned. But the local government had begun, among other bubble-fighting measures, to limit purchases by existing property holders. So, in February, the couple divorced. “Why would we worry about divorce? We’ve been married for so long,” says Mr. Cai. (He requested that the couple’s full names be withheld to avoid potential legal difficulties.) “If we don’t buy this apartment, we’ll miss the chance to get rich.”…
