CHINA's GHOT CITIES
Posted on 10/17/2021 9:28:58 PM PDT by SeekAndFind
The Evergrande crisis —China Evergrande Group (HKG:6666) (OTCMKTS:EVGPF) — has brought to light how China has more than 30 million unsold properties that could serve as the home to 80 million people. Mark Williams, chief Asia economist at Capital Economics, estimates that the “ghost town” phenomenon in the country could account for the entire population of Germany.
The issue reflects key aspects of the Chinese real estate market and brings to light how key elements played a role.
According to Williams, 30% of China’s GDP is comprised of real estate and connected rubrics –a massive share– way higher than in other world economies in terms of output. This has been a key factor in the country’s rapid economic growth for several decades.
However, some experts voiced their concern in recent years about how this characteristic of China could yield a crisis, due to real estate developers taking huge debt to finance their projects.
Enter Evergrande, the country’s most indebted developer with more than $300 billion worth of liabilities, which has turned into a model of how growth can become untenable.
Christina Zhu, an economist at Moody’s Analytics, says “Evergrande is not the only one struggling.” Potential defaults are looming over several other real estate developers that have run into cash flow problems and asked for more time to repay their debts.
According to a recent report by Zhu, 12 Chinese real estate companies defaulted on bond payments representing around $3 billion in the first six months of 2021.
“This accounted for near 20% of total corporate bond defaults in the first six months of the year, the highest across all sectors” in mainland China, Zhu added.
The economic rebound seen after the peak of the pandemic was short-lived for the construction sector, as the market is now showing signs of fatigue. According to Zhu, measures of price growth, housing [construction] starts, and sales have tailed off substantially in the last few months.
Property sales as measured by floor space sold dropped 18% in August compared to the same month in 2020, well before the Evergrande crisis. Mark Williams asserts in this regard: “Residential property demand in China is entering an era of sustained decline.”
Make a trade. We abandon Taiwan. They take our illegals, homeless, and our jail/prison inmates.
Those ghost cities were built over twenty years ago, sit rotting and represent squandered capital. that is what happens when the organs of the central government have control of and direct the expenditure of capital. Thanks do the policies of Janet Yellen and the Democratic cabal that runs Biden, the US if these “infrastructure” bills become law the US will squander even more than China’s CCP. Yellen is already doing as much damage as she can.
Custom-built shitholes, made to order.
As reported by CNN, a further 100 million properties are estimated to have been bought but not occupied, “which could accommodate roughly 260 million people, according to Capital Economics estimates.”
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This is a weird misallocation of capital, now locked up in a nonperforming asset. How will this play out long term? We may be about to find out.
Send them our afghan refugees!
Too much fighting on the dance floor.
I’d rather we send them our democrats, liberals, mask nazis, and media figgers.
Fair trade, they’re our “best and brightest” after all, so for each one knock say, $50 off our balance of trade.
What if the “ghost cities” were to be used to move populations of people to avoid a military response from another country? After covid-22 kills all of the US, and many of the cities in China are nuked in vain...The Chico’s are going to need to go somewhere after they emerge from the tunnels.
Shouldn’t this prove to the Democrats that Infrastructure bills won’t save the economy?
Oh wait...it’s an instruction manual.
Aljazeera an hour ago was blaming all this on China’s determination to meet its carbon emissions targets! and I’ve seen other FakeNewsMSM - especially BBC - tell the same lie in recent weeks:
18 Oct: UK Guardian: China economy slows as power cuts, property woes and Covid take toll
GDP grew 4.9% in the quarter to September, the lowest for a year, as the post-pandemic recovery loses steam and Evergrande problems persist
by Martin Farrer and agencies
Gross domestic product (GDP) expanded 4.9% in the July-September quarter from a year earlier, the national statistics bureau said on Monday, slowing from 7.9% in April-June and compared with expectations for a rise of 5.2% expected by economists...
However, more worryingly for Beijing’s economic managers, on a quarterly basis, growth was just 0.2% between July-September from 1.2% in the second quarter, the data showed. This is the weakest ever recorded since quarterly figures were first published in 2010...
https://www.theguardian.com/business/2021/oct/18/china-economy-slows-as-power-cuts-property-woes-and-covid-take-toll
Sounds like they could house the whole damn U.S.
CC
The good news is that nothing was wasted on drywall or other interior features as I understand that Chinese expect to do the interior finishing themselves and that pretty much includes everything except the studs.
Many report these ghost city buildings as starting to fall apart just years later. Contractors used substandard materials and workmanship.
The CHICOMS injected 15 trillion into their system after 2008. It was all to give the “appearance” of a high GDP. Remember all the “stupid” how China had caught up with the US in GDP? That was all fake.
No one seems to want to acknowledge that we slaves are supposed to be housed in high density houseing wherever the globalists want to put us.
The depopulation agenda has been running behind schedule. China has a priority claim on portions of property in the US and has for example claimed California as it’s property, Hillary was supposed to win - their plans were dragging even before she lost.
Those aren’t intended for the elites - the depopulation agenda will reduce the population by around 90% and put the remainder in high density housing under electronic surveillance.
Good old fashioned graft and a skim is why these towns were built.
Search and you will find videos of Westerners visiting these cities and the buildings are empty shells.Like a movie set.
Money was printed and borrowed to build these cities but it wasn’t spent on building.
As I understand it, these properties are owned by investors (Little People) as it is the only investment they can have.
The Government would have to confiscate these buildings or pay the owners rent.
More than 30 million unsold properties that could serve as the home to 80 million people
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There is so much wrong with this story and the assumption of housing millions of people ; it is difficult to know were to start.
First of all the buildings themselves are unlivable and in many cases not even accessible. Their interiors are unfinished and are mostly shells. The materials are not just shoddy, but structurally unsound to the point of disintegration in less than a year after built : using both styrofoam and cardboard as concrete filler.
The land itself, like all land in the CCP’s China, is owned by the Party. The party sells the land to the developer who immediately begins to sell the concept buildings to prospective buyers (mostly men who have to own property to get married). When enough people have invested in the last remaining safe investment in China, the developer sells the site to another developer - even while construction has begun. The original developer then buys another site from the CCP and the process repeats. Its like the shell game - who owns a building site, apartments or homes, is a random guess.
Many of those buildings themselves were never meant for any one to actually live in and are not built that way. Where ever all those poor homeless are living the article mentions are likely living in better conditions than they would in those buildings. Where buildings are finished, they look rally nice with all sorts of amenities. Along with building maintenance, all of that disappears in a year or two as the building ownership changes hands.
When the buildings become an embarrassment to the CCP, they take the land back without compensation, demolish the buildings, and offer the land for sale again.
Why Evergrande Collapsed - Our Chinese Houses Crumbled (30min) the story by two guys fluent in Mandarin that lived, worked, married and fled for their lives :
https://www.youtube.com/watch?v=lKbLB_T-IjY
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