China's Ghost Cities - Updated 09/10/22 Now tearing down ghost towns to "stimulate economy"

[FelixDeCat]

Updated. Now they are tearing down ghost cities...only to rebuild them to "stimulate" the economy.

What a waste.

https://finance.yahoo.com/news/china-tears-down-tower-blocks-122948254.html

"China is tearing down tower blocks and pausing construction on buildings that could house 75m people as Xi Jinping’s government seeks to prop up the country’s stalling property market.

Analysts have warned Beijing has adopted a “build, pause, demolish, repeat” strategy as Chinese officials seek to restrict supply to avoid a plunge in house prices and boost economic activity through more construction."

https://twitter.com/x/status/1561748772593360897

 

[RPD]

100% sustainable

 

[drnickriviera]

Plan so stupid it will probably work. Where do they plan to get the money to build the new ones? Wasn't a lot of this funded by the Chinese people hoping to get stupid returns on buildings that haven't even been built?

 

[FelixDeCat]

Plan so stupid it will probably work. Where do they plan to get the money to build the new ones? Wasn't a lot of this funded by the Chinese people hoping to get stupid returns on buildings that haven't even been built?

They will probably rely on what worked before which was new "investors" buying new buildings before they are even built yet being that they are only mostly allowed to invest in real estate.

As far as initial construction financing, the government is propping up Chinese banks that are holding so much bad debt. In some cases, people were still expected to make payments are buildings being torn down.

 

[sdifox]

The really insidious thing about this is their mortgage is messed up. In North America, if you cannot repay the mortgage, they repossess the mortgaged real estate. Over there, the person taking out the mortgage is responsible even if the development is not finished. So you are stuck with a mortgage without the property you took out the mortgage against.

 

[Red Squirrel]

What a waste of resources. So these buildings got built, nobody ever used them, and now they're torn down so they can build more. So ass backwards.

 

[Roger Wilco]

Kind of feels like it’s time to start betting against China.