China is heading for a crash because it has the mother of all economic booms with annual growth rates of 10% which was always unsustainable. The Chinese economy is half the size of the US economy and any notion that China will overtake the US and become the nation that dominates the 21st Century has almost certainly been dashed by the bubbles in its economy and housing markets. Back in the 1980’s it was thought that Japan will overtake the US but Japan had a massive house price bubble and stockmarket bubble which popped and left Japan devastated with a twenty year long period of deflation and economic stagnation. It is unlikely that China will go the same way as Japan but you can already see the slowdown in the Chinese economy and this will in turn cause a fall in commodity prices like copper, aluminium, iron ore and other raw materials.
The Chinese economy is already slowing down quite dramatically because its dominate trading partner is the european union and with problems in the euro-zone countries and economic problems in the US means less demand for Chinese goods which will result in a fall in the standard of living of the Chinese population and possible economic collapse. This means that there will be less demand for overseas property from the Chinese as the Chinese retrench and curtail their spending in the face of a slowing economy.
Now it is said that it is the Chinese who are buying property, but before that it was the Swedes who were buying and before that it was the Russians and before that it was the Norwegians. It is always the same story but using different nationalities in order to spread rumours about a recovery in the decrepit Spanish property market but what is certain is that Spanish property prices are going down for the next five years.
A reason why agents are getting more buying enquiries from the Chinese is because the Chinese property bubble is set to burst as their economy collapses in the face of the global economic slowdown. Property prices in Hong Kong are amongst the highest in the World and prices have risen sharply in places like Shanghai but there are already ghost developments in China where there was over-development but there is falling demand for retail and residential developments and some well-to-do Chinese are trying to get out of their property bubble before it bursts.