China Property Market Set for ‘Healthy’ Correction

China’s home prices are set to fall as much as 20 percent in a “healthy” correction, said Michael Klibaner, head of China research at Jones Lang LaSalle Inc.

China’s property boom is “cash-driven” rather than “leverage-fuelled,” which means there’s only a low chance of the type of forced selling that exacerbated the U.S. housing market collapse, he said in a Bloomberg Television interview today. That view contrasts with Harvard University’s Kenneth Rogoff’s prediction yesterday of a “collapse” in China’s property market that will hit the nation’s banking system.