Ghost cities of China exceed 64.5 million vacant homes

 

China may have the largest housing bubble in history of the world!

It is being reported that 64.5 million urban electricity meters registered zero consumption over a recent, six-month period in China. That led to a theory that China has enough empty apartments to house 200 million people. The story is related to the housing bubble, as the CAIXIN TABLOID reported in the summer of 2012.

An alarming report by ¬†Lesley Stahl of¬†¬†60 Minutes not only walks us through the abandoned city streets, but explains ¬† how there are now entire cities being created all over China with no one living in them. “Statistical transparency is lacking in this area, so the truth about empty apartments remains under wraps. Publishing accurate data should be of the highest priority, since the size of the nation’s unused apartment stock is perhaps the most important measure of the extent and seriousness of China’s property market bubble. Indeed, it’s a grave concern for policy making, since unpublished data may indicate not only a price bubble but a quantity bubble burdening the market.”

There is major concern for the Chinese middle-class. The middle class have invested massively in property and now estimates suggest that property invest accounts for as much as 20-30% of the economy. As many as 24 new cities are being built every year! The Government has allowed this expansion to continue to keep the economy growing but the level of infrastructure development is far ahead of the demand for property.

As many as 24 new cities are being built every year! How is this possible ? The Chinese  Government has allowed for this  this expansion to continue i order  to keep their economy growing but the level of infrastructure development is far ahead of the demand for property.

 

The latest fear for developers in China in 2013?

“Wang Shi, CEO of ¬†Vanke told “60 Minutes” that developers are deep in debt. Many have abandoned projects midway through because the money dried up. He warned that if the ¬†bubble really did burst, China could see its version of the¬†Arab Spring.”

A housing ¬†bubble ¬†could ¬†literally ¬†destroy China’s financial market for good, with no recovery in sight.

Zhengdong, a new area in the Hennan Province is like walking int a forest full of skyscrapers, except they are all empty. (courtesy of 60 minutes)

"Central business district features a ring of significantly vacant skyscrapers." (courtesy of 60 minutes and the Insider)

 

 

Empty developments outside Chengsha, China (Google Earth)

 

 

Just outside Angola’s capitol¬†city of Luanda is Nova Cidade ¬†de Kilamba a residential development of 750 eight-story apartment buildings, a dozen ¬†schools, and more than 100 retail units, reports the¬†BBC’s Louise Redvers.

Read more: http://www.businessinsider.com/chinese-built-ghost-town-kilamba-angola-2012-7?op=1#ixzz2Rc1ARbra

Nova Cidade do Kilamba Kiaxi - Luanda, Angola. (Photo by ANGOLA Non-Profit Organization)

 

Read more: http://www.businessinsider.com/60-minutes-chinas-ghost-cities-2013-3#ixzz2Rc2cHYMy

 

Major concern for China’s middle class

The middle class have invested massively in property and now estimates suggest that property investment accounts for as much as 20-30% of the economy,with  24 new cities are being built every year! The Government has allowed this expansion to continue to keep the economy growing but the level of infrastructure development is far ahead of the demand for property. Developers are going bankrupt, and in most cases have simply abandoned the projects for miles and miles.

64 million vacant apartments in China,held by the middle class if investors.

 

We found that 60 minutes has the best coverage on this story, please watch it! Astounding!

 

Ghost Cities in China 2013

 

100% VACANT Ghost Cities in China

 

The Truth Denied Staff  Writer published April 26th, 2013









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