Tuesday, December 14, 2010

Bubble: 64 Million Vacant Homes In China

The hottest market in the hottest economy in the world is Chinese real estate. The big question is how vulnerable is this market to a crash.
One red flag is the vast number of vacant homes spread through China, by some estimates up to 64 million vacant homes.
We've tracked down satellite photos of these unnerving places, based on a report from Forensic Asia Limited. They call it a clear sign of a bubble: "There’s city after city full of empty streets and vast government buildings, some in the most inhospitable locations. It is the modern equivalent of building pyramids. With 20 new cities being built every year, we hope to be able to expand our list going forward."

Read more: Here..


  1. Now that's taking "build it and they will come"
    to the extreme.

  2. China depended on the US to keep buying up all the stuff they made and never foresaw our crash that is continuning and accelerating. Oh well too bad for them, at least they still make stuff which will inevetibly help them out of their crash.

  3. Inflation is growing in China interest rates paid by the banks and on safe bonds are less that the rate of inflation .
    Therefore the ordinary working people, to preserve the value of their savings have to,are forced to , turn to share or property speculation .
    There is no other way left to save.
    Like in past America before the Ponzi economy imploded there is the belief that property values will “always” go up.
    In boom times As in past America this savings strategy for retirement appears to have worked well for many .
    So people rush to borrow and invest in property out of fear if they do not get in right now , they will not be able to invest or own a house later ,after the prices of houses rises even more.
    But the high prices now demanded for these houses are aolready becoming unaffordable for ordinary people to pay off.
    The rich and billionaire capitalists with inside knowledge “connections” to the “socialist” ‘Communist party” princelings and bank credit for approved by their friends property developments , have the inside track ,to fleece the desperate hordes of unsophisticated small investors .

    The super rich that have often already invested bolt hole money overseas in say a property in Hong kong , Taiwan ,America ,Canada the UK or Australia may still have cash to play the Chinese share and property markets .
    Chinese have a long and deep culture of gambling .
    Of belief in personal luck sent from the ‘god of prosperity” and sometimes a fatalistic acceptances of losses as luck .

    The rich of China ,knowing the writing is already on the wall ,try to mostly only bet or loan what they can afford to lose in a get rich last ditch quick spirit of property flipping .
    As property HAS always gone up in recent years they are also prepared to sit on empty houses as “new” houses to get a higher premium price than “used” houses.
    These property and share bubbles are all bound to end in tears for the working people who will lose ALL their savings and only own a lot of mortgage debts.
    As in America the Chinese government hoped it can save the economy and its property and share bubbles , by massively injecting printed stimulus money.
    Now ,it fears that it has done to much already as it sees inflation rapidly growing and is attempting to rein in the credit supply feeding the bubbles by reducing stimulus ,increasing interest rates ,as well as demanding the banks set aside more reserves ,thereby reducing the amount of fractional reserve credit creation.
    The result could easily be a huge collapse in prices in the property markets as mortgage money will get hard to get
    If there is the belief that there are big winners in the share markets it is also true that there must be losers too .
    Not everybody can in the end extract more value from the same pot than what they all have put in. That is a common fantasy too.
    but, only banksters and the rich with inside knowledge can do that.

  4. been seeing vids on vacant shopping malls there for more then a year now...now why can't americans do that..skip the mall!! lol


  6. @8:36. The malls are vacant probably because they don't want to buy cheap Chinese JUNK!!!

  7. I think this is just propaganda! With 1.3 billion people I don't think they will have a problem filling up these cities. they're there for a purpose.

  8. 7:34 its called speculation. What are the buyers going to do let the poor unemployed live in their spec houses for free? Learn economics its a BUBBLE. If you put 2 people into each house that's almost the total amount of illegals sitting in the U.S. LOL

  9. Anonymous said...
    @8:36. The malls are vacant probably because they don't want to buy cheap Chinese JUNK!!!

    As america has been de-industrialised and its workers cannot make this stuff profitably anymore , and under the great ponzi economy lived on credit you will only get the quality you can pay for ,dept peon.
    Junk? Thats your american lifestyle now.
    Suck it up.
    Pay the interest on your bills on time.
    The rich do not shop at Wall Mart for junk.


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