What effect with the revaluation of the Chinese Dollar (rmb) have on housing costs in China?

Will initially little or no change, and about 8 months later a crash as some predict?|||China is not planning to revalue the yuan anytime soon. However, the possibility exists that it may begin a revaluation process in late 2010, possibly running for 2 or 3 years.





Any revaluation of the Chinese yuan will occur gradually over an extended period of time. The precedent for this was the gradual revaluation of the yuan that occurred between 2006 and 2008. The yuan was allowed by the Chinese central bank to float from 8.28 to 6.83 to the U.S. dollar at that time.





China's monetary authorities will manage any future revaluation of the yuan with the best interests of China at heart. They are more than capable of monitoring and discerning the impact of gradual revaluation as it occurs. There will be no "crash" in the future, just as there was no "crash" in the past.





Housing costs in China will likely remain steady through a gradual revaluation, though demand for high-end homes may soften slightly. The only home buyers who will feel pressure (if the yuan rises gradually) are foreigners whose foreign money is worth less in terms of yuan exchange.|||housing world wide used mostly domestic materials as such it is unlikely there will be any effect on housing costs|||The Chinese housing market and the economy in general have been living in a bubble for a long time now. Both are going to collapse regardless of revaluation.


Watch this space. LOL