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I thought most of the oversupply was in the “ghost cities” that were being built to boost GDP. I’d imagine that in most of the large Chinese cities housing woul
by vondur 8y ago
I thought most of the oversupply was in the “ghost cities” that were being built to boost GDP. I’d imagine that in most of the large Chinese cities housing would be pricy just due to the demand side of things. Huge amounts of people have migrated to the cities in the last 20 years.
- downrightmike 8y agoI think a lot of these projects are put together to make use of resources that otherwise wouldn't have an output, and the recent trade "war" slowed the export of these materials to the point where there isn't enough liquidity like there was. There was an article a year or so ago that went over the crisis facing cement plants that had to take out loans to cover interest on prior loans and that most plants are operating at a loss, but still operating so as to at least make some money. When the trade slowed last fall, they sold less, and maybe that was enough to push them past the breaking point when interest came due.