China Real Estate: Ghost Cities (Again)22 March, 2011, 0:48. Posted by Zarathustra
Tags: Bubble, Real Estate
If the empty New South China Mall isn’t enough to convince you that China real estate is a massive bubble, here is more evidence.
Adrian Brown of SBS Dateline visited a few places in China to investigate what’s happening on the ground (watch it here, highly recommended). From the vacant Zhengzhou New district (from 0:40 in the video), the vacant New South China Mall (from 1:45 in the video), and the vacant Daya Bay (from 4:57 in the video), the programme takes you through some of the most absurd developments in China real estate market.
Daya Bay is an interesting one: this city would be able to house 12 million people, but here’s the problem: Daya Bay is known for, among other things, the Daya Bay Nuclear Power Plant. Although the urban area is not located right next to the nuclear power plant (quite far away actually), this should at least raise your eyebrows. Many buyers are, interestingly enough, not quite concerned, because some report suggested that 90% of buyers in Daya Bay are investors, and they themselves do live there anyway. As a result, the city remains largely unoccupied, and it is unclear whether it will ever be.
A certain rumblings recently suggested that some developers are trying to sell flats in Daya Bay by offering “buy one get one free” discount. Though it is unclear whether that will help filling up the city, especially after the nuclear crisis in Japan scares people away from anything associated with radioactive stuff (eating salt will not help, don’t do this).
See more Daya Bay Real Estate Photos here
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