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They are massively underwater. They have hundreds of thousands of unfinished apartments, and no money to finish them. And even if they could, no one wants to
by onlyrealcuzzo 3y ago
They are massively underwater.
They have hundreds of thousands of unfinished apartments, and no money to finish them.
And even if they could, no one wants to buy the unsold apartments.
The average person in China owns more housing than the average person in the US or the EU.
This, with house prices being roughly equal but incomes being 1/6th on average, and there being about ~2.5B unfinished sqft of space (~2 sqft per person), and a rapidly shrinking population.
You do the math. Houses have been in a massive bubble in China for a long time, on nearly the same level as the Japanese bubble.
Who knows if it's finally going to pop. But the writing definitely seems on the wall now.