Typical housing prices in Kangbashi have fallen from $1,100 to $470 per square foot, over the last five years alone.
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.
2018 Update: The Chinese government intends to relocate 100 million people from rural areas into metropolitan cities by 2020. According to Forbes, “cities and extensions get built purely based on speculation, but not on direct demand. Massive stretches are built, and it is assumed that the future growth and prosperity will somehow fill the space up.”
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 Indeed, it’s a grave concern for policy making, since unpublished data may indicate not only a price bubble but a quantity bubble burdening the market.”
China is often cited as having used within just three years the amount of concrete the US did in the entire 20th century.
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.
Were you aware that the country of China is slightly smaller than the USA?
How Large is China?
Population: 1.379 billion (2016) World Bank
Area: 3.705 million miles
How Big is the USA?
United States of America
Country in North America
Population: 323.1 million (2016)
Area: 3.797 million miles
2009 It was in Ordos Kangbashi that the Chinese ghost city narrative was born.
One ghost city in Inner Mongolia, built to house one million people, is now an empty shell of unoccupied skyscrapers and abandoned construction sites.
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.
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.
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.
We found that 60 minutes has the best coverage on this story, please watch it! Astounding!