It is obvious that within the past two decades China’s economy has grown. It has become the second largest economy in the world which was because of government initiatives into encouraging foreign direct investment, local entrepreneurship and real estate development within the country. Also, the outsourcing industry has helped in improving the Chinese economy within the past 20 years causing rapid development and expansion of cities and factory complexes in China. It was seen though in the study of Country Report (2011 ) which looked at the 70 million housing surplus units within China showed that most if not all if these units had price schemes well above what an average Chinese worker would be capable of affording (Economic forecast, 2011: 7). In looking at the case of Country Report (2011) the rapid economic growth and development within China came also with an equally good expansion of China’s real estate with hundreds of thousands of construction projects expected to reach their completion periods by the end of 2012 – 2015. The problem as explained by Country Report (2011) is that while there is a high rate of property development that is happening within Chinese cities there is a lot of housing surplus within the country with well over 70 million surplus housing units at the present. The problem when looking at this situation based on the findings of Country Report (2011) is that while having housing surplus would be fine if such housing were created in order to meet expected demand within the near future the problem is that what is being made is not housing or subsidized housing schemes which are in great demand within China due to a lot of urban poor and urban workers but what is being made is high end property development which few people can afford. Another way of looking at this issue is through the article of Lan (2011) which looked at changes in China’s social development. Lan (2011) points out that within recent years, as result of China’s increasing manufacturing industry, a relatively new segment of the population developed as a direct result of China’s progressive economic growth and development over the past 20 years and as such has come to become an influential factor in the local economy (Lan, 2011: 47 – 49). The problem as indicated by Lan (2011) is that this relatively new upper class is unfamiliar with the concept of wealth and privilege and as such have actually modeled their spending habits on that of the western world. It was seen in various instances that they spent a lot of money recklessly, lavishly and usually concentrated these purchases on high end real estate. Data released by the Boston Consulting Group has estimated that the number of affluent/ middle class households within China will reach roughly 130 million by the end of 2020 (Lan, 2011: 47 – 49). What is seen though in the case of China, as explained by Lan (2011) is that real estate development within the country has been that same as that of the affluent/middle class population growth but instead has gone past it with nearly 70 million homes/apartments meant for that particular population segment already having been built. In the case of tier 2 cities Bennet (2002) explains that “the housing backlog (referring to the amount of unsold surplus units within buildings) was set for 1 year