No people, no cars

The Daily Mail has satellite photos of many empty cityscapes in China — no people, no cars:

Of the 35 major cities surveyed, property prices in eleven including Beijing and Shanghai were between 30 and 50 per cent above their market value, the China Daily said, citing the Chinese Academy of Social Sciences. Prices in Fuzhou, capital of the southeastern province of Fujian, had the worst property bubble with average house prices more than 70 per cent higher than their market value…

According to research carried out by Time magazine, fixed-asset investment in the Asian country accounted for more than 90 per cent of its overall growth — with residential and commercial real estate investment making up nearly a quarter of that. Regional governments across China have been building massive real estate projects, including Kangbashi in Inner Mongolia and Zhengzhou New District, which have remained empty…

Regional governments across China have been building massive real estate projects…Kangbashi, which was built in just five years, was meant to be the urban centre for Ordos City — a wealthy coal-mining hub home to 1.5 million people. It was filled with office towers, administrative centres, museums, theatres and sports facilities as well as thousands of homes, but remains virtually deserted.

A short seller said that “the country was ‘on an economic treadmill to hell’ and the country’s bubble was ‘Dubai times 1,000′.” TIME has more photos. China has not had a recession in three decades. When it finally does, it will be a doozy, and no one knows what the consequences might be.

One Response to “No people, no cars”

  1. ECM Says:

    Stock up on TVs, stereo equipment and computers now!

    /sarcasm (maybe!)

Leave a Reply