The deserted streets of a Chinese ghost city
In just 30 years, China‘s state-controlled economy became the world’s second largest, strictly managed by government policies and decrees.
One of the few economic sectors where the rising and affluent middle class could invest was real estate and construction.
As much as 30% of China’s economy is housing-related. Families have tied their savings into apartments. No one is renting them.
In Shanghai, buying an apartment costs 45 times the annual income of a typical Shanghai worker.
But that may have created the largest housing bubble in human history. It’s easy to understand why everybody talks of a bubble when you go to China and check it out.
Or you may watch the new report from CBS “60 Minutes” titled “China’s real estate bubble.”
The most populated nation on earth is building houses, districts and cities with no one in them.
The world’s economy will suffer a great blow if the Chinese economy seizes up.
Source: Business Insider – “This ’60 Minutes’ Video Of China’s Ghost Cities Is More Surreal Than Anything We’ve Ever Seen”Related Articles
- China’s real estate bubble – 60 Minutes (macromon.wordpress.com)
- China’s Housing Bubble Goes Mainstream America (zerohedge.com)
- Re: China’s Real Estate Bubble…about to burst? (libertycaucus.net)
- China to flatten 700 mountains to build a city (chinadailymail.com)
Reblogged this on CHINDIA ALERT: Hidden Dragon, Crouching Tiger and commented:
Maybe these empty apartments will be used to house the 400 rural people being moved to cities in the next 20 years. But NOT at 45 times the annual income. So there is bound to be a massive devaluation. That in turn could lead to massive dis-satisfaction by the ‘upper’ middle class, which in turn …
Posted by keeper @ chindia-alert | March 7, 2013, 9:03 pm