China's 'vacant Cities'

[MrWorldwide]

I seem to recall reading something about this 'glut' a couple of years back, and anything citing a tabloid like 60 Minutes as it's source will always be dubious, but those skyscapers are dearly needed in Sydney and Melbourne ...

http://www.news.com.au/business/china-building-mega-cities-but-they-remain-empty-sparking-fears-of-housing-bubble-burst/story-e6frfm1i-1226611169281

I just find it a little hard to believe that Chinese investors honestly thought there would be a rush of folks to Ordost, Mongolia, to live in these 'brave new worlds'. Weird.

[NeverSure]

"Hong Kong-based financial analyst Gillem Tulloch said while the initial boom provided good returns, he fears the bubble is about to burst.

"What they (the wealthy middle class) do is they invest in property because property prices have always gone up by more than inflation," he told CBS's 60 Minutes.

"It's the main driver of growth and has been for the last few years. Some estimates have it as high as 20 or 30 per cent of the whole economy.

"I think they're building somewhere between 12 and 24 new cities every year."

But huge growth has let to a glut of not just apartments, but entire towns and has forced the government to bring in a one-apartment law, where people can own just one property."

In Inner Mongolia, developers built the city of Ordos for one million people. But most of it remains empty."

"...invest in property because property prices have always gone up by more than inflation."

And there is the mentality that got the USA, that has gotten China, and will get Thailand. It is 20% -30% of China's economy!!!!!!!!!

China is about to go into deep sh1t. Thailand isn't far behind. Who can miss the similarities? Thai banks have 40% of their loans in real estate, and let's not forget the magic of fractional banking which can let the air out of the balloon overnight.

We'll be around to say we tolja sew about China, Thailand, and Asia as tomorrow's investment paradise.

[MrWorldwide]

I dont see the prospect of China going down the tubes as being something to celebrate. A worldwide recession ? No thanks.