It’s a problem for people who indebted themselves to buy those homes with a valuation based on scarcity. Also a problem for the real estate Chinese companies, sector which represents a quarter of Chinese economy.
Sounds to me like China is trying to solve both of those problems by lowering property scarcity - if this stays controlled it will make properties cheaper so people don’t need to acquire as much debt and it will shrink the real estate sector. Since this housing is built through centralized control and not a market, it should be totally under control.
Obviously something unexpected could happen that blindsides the Party, but it looks like politics is in command and everything is proceeding as expected.
Obviously something unexpected could happen that blindsides the Party, but it looks like politics is in command and everything is proceeding as expected.
I take it you didn’t read the article.
A former Chinese government official said the country’s entire population of 1.4 billion wouldn’t be enough to fill all of its empty houses, Reuters reported, citing a video from the state news agency China News Service.
China’s real-estate struggles rose to prominence in 2021, when industry giant Evergrande became the most indebted company in the world and defaulted.
At the time, there were at least 65 million vacant properties in the country, which would have been enough to house the entire population of France, Insider previously reported.
To me, this seems wasteful. I’m not very familiar with the Chinese real estate market however.
It’s a problem for people who indebted themselves to buy those homes with a valuation based on scarcity. Also a problem for the real estate Chinese companies, sector which represents a quarter of Chinese economy.
Sounds to me like China is trying to solve both of those problems by lowering property scarcity - if this stays controlled it will make properties cheaper so people don’t need to acquire as much debt and it will shrink the real estate sector. Since this housing is built through centralized control and not a market, it should be totally under control.
Obviously something unexpected could happen that blindsides the Party, but it looks like politics is in command and everything is proceeding as expected.
I take it you didn’t read the article.
To me, this seems wasteful. I’m not very familiar with the Chinese real estate market however.
There should always be a reserve supply of vacant properties to give people freedom of movement between regions and cities.