The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.
@leojack90907 ай бұрын
Investing in both real estate and stocks can be prudent choices, particularly when backed by a robust trading strategy that can navigate you through prosperous periods.
@hasede-lg9hj7 ай бұрын
You're not doing anything wrong; the problem is that you don't have the knowledge needed to succeed in a challenging market. Only highly qualified professionals who had to experience the 2008 financial crisis could hope to earn a high salary in these challenging conditions.
@lowcostfresh22667 ай бұрын
@@hasede-lg9hj Please pardon me, who guides you on the process of it all?
@hasede-lg9hj7 ай бұрын
I won't pretend to know everything, though. Her name is Melissa Rose Francks but I won't say anything more. Most likely, you can find her basic information online; you are welcome to do further study.
@fadhshf7 ай бұрын
Thanks a lot for this recommendation. I just looked her website up, and I have sent her an email. I hope she gets back to me soon.
@benevolent67058 ай бұрын
I visited China 6 months ago, and believe me, YES this ghost town thing is a real thing. I saw entire cities built in the middle of nowhere surrounded by farms, and looking like no one lives there. Also, my chinese gf's family all owns multiple vacant properties because it's just in the culture to own extra homes. They have homes worth 100k-200k USD equivalent and they make ZERO ROI on them, instead of throwing it into the SP500 and make 10.5%. That's how entrenched the manic bubble of home ownership has become in China.
@Ilovecruise8 ай бұрын
In Chinese culture, stock is a lot more volatile where most people think of it no different from gamble/ unable to compete with financial institutions. In contrast a “house” as in completed house/paid are much safer and its value are likely to increase (even if prices fall, they still own their houses. In simple terms, the Chinese market treat housing investment as a low risk choice
@youarebeingtrolled69548 ай бұрын
Are empty ghost cities better or worse than toxic CDO’s and bad mortgages
@hangender8 ай бұрын
Why did your girlfriend gamble with her entire family's money?
@joshuaguo13268 ай бұрын
They don’t have access to US equity markets.
@CarlosRodriguez-hb3vq8 ай бұрын
10.5%???
@dixonpinfold25828 ай бұрын
Nantong's population is given as 7.7m, making it sound like an unheard-of metropolis, but this is for an extended area. Official sources give its metro population as ~2.5m. Moreover, it nearly borders on Shanghai and is often called North Shanghai. Last year it was announced that the 3rd airport for serving Shanghai will be built there.
@kabysummit58017 ай бұрын
US refers its own population the same way. Hence the problems they're facing, that people are reduced to stats or simply data.
@Xunxunism7 ай бұрын
Are you sure a 3rd airport is necessary?
@zelllers8 ай бұрын
In Canada we have opposite problem.
@DW-op7ly7 ай бұрын
It’s actually not much different In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers. Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate. Even then, It took them almost 14 years to get their overheated real estate under control Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018 Why is their Central Government doing this? Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen. Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need In China Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married Thus the common prosperity push and the crackdown on the overt displays of wealth in China Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
@antoncarmoducchi60577 ай бұрын
no, the same problem, different outcome. a dictator.
@DW-op7ly7 ай бұрын
Dictators were not the only reason The USA has the same problem, as did most countries had the same problems because of low interest rates It created very little investment options other than overheating crypto, stock, and real estate markets The only reason central banks started raising rates was because of consumer staples inflation brought on by the Russian invasion of Ukraine and China zero Covid Mind you countries that people like you want to decouple from, which we would go without or raise prices even more For central banks they probably figured people like you would mind less if their home values go down a bit vs not being able to put food on the table
@DunDun-e437 ай бұрын
@@DW-op7lyIf anything they not high end enough or designed in a human way possible. I don’t care how luxurious they make them inside, row after row of similar building in unnatural square and no real green parks instead concrete parks and not enough space to take a walk without being overshadowed. Even the house or mansion devs, no lawn and same same with no space between them. They really should design each place and have space in mind to exercise and also put damm balcony on the outside on tall buildings, dammm, they look like domino that will fall any instant by being so slim rectangle all the buildings. Have more shape.
@DW-op7ly7 ай бұрын
Well now you are just giving western opinions on what they deem as a nice home Here is my opinion in the west we want that picket fence and green grass I notice many Chinese immigrants build right up to the side walk. With a big drive way instead to store all their cars My sister just had a neighbour from China build their new house, right up to the property line they built so close they asked to move the fence more onto my sisters property because one of the side doors was hitting the fence when they opened it 🙄 My sister of course said no ….
@user-iz3gv5vo6b8 ай бұрын
2:38 That's a picture of Hong Kong, which has the exact opposite of the excess homes of "ghost cities" in China. Even with a recent decline in prices, Hong Kong apartments are still among the most expensive in the world, and the vacancy rate is among the lowest.
@lppoqql8 ай бұрын
Good, just like Japan before any country that engages in real estate frenzy will have a crisis. I hope everyone learn not to prop up the real estate bubble. I'm looking at you Canada.
@JJJohnson4418 ай бұрын
Keep dreaming renter
@lppoqql8 ай бұрын
@@JJJohnson441 Sorry kid, I have rental units. I'm just telling the truth. Go do something productive instead of flipping houses. Only the unskilled horde houses because they cant do anything else.
@serena-yu7 ай бұрын
And Australia.
@TurnkeyTrading8 ай бұрын
I have been hearing about China's economy and real estate crash for ten years.
@mr.impact73688 ай бұрын
only 7.7 mil, what a tiny village
@Funktastico8 ай бұрын
Yes 7.7 mil is only 0.5% of their 1412 million population
@kabysummit58017 ай бұрын
@@Funktasticothese are people we're talking about
@MichaelChengSanJose8 ай бұрын
Can’t fault the Chinese for being property crazy. With the capital controls, there’s literally no other investment option. You can’t invest in most stocks as companies are heavily controlled by the government. It’s better to take an empty condo than to have cash sit around earning nothing.
@stant71228 ай бұрын
She said there’s an estimate the homes will be filled in 5 years. That’s not very long. Sounds like a short term problem
@bullpup13378 ай бұрын
5 years is short term for you? 😮
@MichaelChengSanJose8 ай бұрын
@@stant7122That’s wildly too optimistic. Those homes will take decades or longer to fill. Many of them are not in productive cities where young people with money want to go. And many of them will decay too much in the next few years to be worth fixing up to live in.
@MichaelChengSanJose8 ай бұрын
@@bullpup1337Yeah, it’s going to take way longer than 5 years. But in China, even 10 years is short term.
@DW-op7ly8 ай бұрын
Where are you getting Chinese stock markets are Government controlled Yes they might step in But there are no market makers 85% of the trades are done by retail mom and pops 81% make atleast 1 trade a month And 67% have not graduated highschool 👇 Why China's stock market bubble was always bound to burst | Orville Schell Jul 16, 2015 - According to one widely cited survey of these new investors, 67% of them have less than a high-school education. The Guardian
@williamhogarth74238 ай бұрын
USA is on the road to this as well. During covid all the bank loans for crap luxury building went from China to the US. GFC 2.0 won't be caused by subprime lending but luxury and office
@headspaceandtiming21148 ай бұрын
A lot of commercial real estate loans are coming due. Investment companies will walk and leave the burden on the banks. The Fed Government will bail them out. Nothing to worry about people. Just keep printing money and telling us how great the economy is growing.
@backupkuzas8 ай бұрын
Its worth noting the sector is not nearly as big as the residential sector, and the investors and institutions involved can handle stress. It seems unlikely that that problem is a systemic risk to the financial system
@empcaligula30327 ай бұрын
This makes the 2009 financial crisis look mild. It took US over a decade to completely recover and there are still lingering effects. China’s property crisis seems catastrophic.
@jooky878 ай бұрын
Move all the buildings to Canada and Australia!
@bullpup13378 ай бұрын
sure, shall we ship them by plane or by boat? do you want us to gift wrap them?
@jonathansoto90798 ай бұрын
This is exactly what we need in the U.S
@weho_brian8 ай бұрын
65% of American people who are homeowners disagree with you
@DW-op7ly7 ай бұрын
90% of Chinese own a home 80% free of any encumbrances The issue is owning a home in their cities and the 70% of the Chinese in those markets buying their 2nd and 3rd homes even with a crackdown
@OutLongWalking8 ай бұрын
"you can't just build and they will come" the issue is that for a very long time you could build and they will BUY. Usually not to live in but as investment properties or a "secure" space to park their nest eggs, family savings, retirements, etc. The realization that most of this money is gone will be a hard one for many people in China
@RobRoy3518 ай бұрын
No - that mindset only reduces the corn output of your farmland.
@DW-op7ly7 ай бұрын
China actually has a oversupply of higher end homes but not affordable homes In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers. Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate. Even then, It took them almost 14 years to get their overheated real estate under control Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018 Why is their Central Government doing this? Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen. Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need In China Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married Thus the common prosperity push and the crackdown on the overt displays of wealth in China Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
@sarcasmo577 ай бұрын
It always seemed crazy they way they overbuild housing on such massive scale for decades.
@chiaweinam8 ай бұрын
they have been talking about the collapse of china's economy for decades but when was the last time this korean woman reported some positive news about china?
@mrtee34778 ай бұрын
It's beginning, and the US will follow.
@absusup8 ай бұрын
she reports the truth
@Yenhongsin778 ай бұрын
if no news from her, that means no bad news she can find.
@vegamoonlight8 ай бұрын
@@mrtee3477you have more homeless people. China has a surplus of housing units that can be occupied after a year or more. The ghost cities that the Western media have been reporting since 2000's have now been occupied. They have centralized planning but your government does not have.
@DW-op7ly8 ай бұрын
In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers. Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate. Even then, It took them almost 14 years to get their overheated real estate under control Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018 Why is their Central Government doing this? Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen. Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need In China Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married Thus the common prosperity push and the crackdown on the overt displays of wealth in China Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
@graphdatascientist8 ай бұрын
7.7 million people is a metropolis
@NomadicAstro8 ай бұрын
That’s rather 4-5th tier town in China tho.
@yangz18038 ай бұрын
A 7.7 million population city is quite often a average size city in China.
@therandomactivist11247 ай бұрын
Not by chinese standards it's not 😂
@toram62108 ай бұрын
Cnbc should report the ones in USA too
@luiscastillo70098 ай бұрын
a small village in China has 2 million people
@jasonhutchinson80608 ай бұрын
Which intern did the sound on this?
@harrysmith85158 ай бұрын
Unlike US, China has no property tax. People can afford to hold a few properties and wait for them to appreciate in value. That is the model many people use to become multiple millionaire in the last 2 decades.
@crosslink14937 ай бұрын
I know its a little different property model in China, but I thought the government owned the land, and the buildings on that land are essentially "leased' by the (so-called) "owners" for long terms of 60-90 years. So no private property to impose taxes on. And property is about the only thing a person/family can invest in for the future as there are capital controls that thwart most investment options like in the West, and no one trusts the stock exchanges as a way to invest (lack of financial transparency).
@DW-op7ly7 ай бұрын
Saturday, April 15, 2017 Full Private Land Ownership Returns to China’s Cities I don’t see how to read this other than as a promise of perpetual free renewals. This means that people who paid for a 70-year LUR now find themselves with a perpetual LUR: the equivalent of full fee simple ownership. That’s worth noticing. Law professors typepad
@DW-op7ly7 ай бұрын
Basically many in the west are complaining because they are cracking down on property speculation in China…. Yet cheering on our own crackdown on speculators here The other option is 70% of the Chinese in their real estate markets buying their 4th or 5th home right about now In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers. Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate. Even then, It took them almost 14 years to get their overheated real estate under control Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018 Why is their Central Government doing this? Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen. Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need In China Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married Thus the common prosperity push and the crackdown on the overt displays of wealth in China Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
@paranoidhumanoid7 ай бұрын
There is no country on earth, including here in the US, where property is outright owned by private individuals. If you stop paying property taxes on a home that is paid off, the state seizes your land. If the state finds your property is sitting on utilities lines or natural resources, eminent domain provides for the state to legally seize the property. You're basically leasing land, as the Chinese do, from the state. It's just a matter of semantics.
@DW-op7ly7 ай бұрын
Yes so true here in Canada I owned a commercial property (2 lots) zoned for light industrial with living units on top The Government came And took it citing eminent domain as they put a skytrain across it I got 300k This was before the line developed the city and we had a influx of immigrants Now I figure it would be worth 2.6 million Atleast being on the main road in the city empty lot on the outskirts of the city would net about 1.3 million for each lot
@robhappe9068 ай бұрын
It also means that a big part of savings is worthless
@amunra53308 ай бұрын
Actually, what western media is not saying is that first time home buyers is booming in China.i plan to buy a home when I get married this year.
@darylb55648 ай бұрын
They want 30 year olds to buy these places. I spoke with a doctor friend and she told me it takes like 30 years to make a 30 year old. They may need a flux capacitor to address this issue…
@DW-op7ly7 ай бұрын
In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers. Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate. Even then, It took them almost 14 years to get their overheated real estate under control Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018 Why is their Central Government doing this? Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen. Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need In China Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married Thus the common prosperity push and the crackdown on the overt displays of wealth in China Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
@david_dor8 ай бұрын
Well at least we won't have to worry about that here in the USA anytime soon, lol.
@Ray-ou6ig8 ай бұрын
Yeah, we’re in a housing crisis over here.
@NomadicAstro8 ай бұрын
Housing shortage here in the states. At least people have access to cheap housing in China if they needed one. Real good setup for re upping on population growth which I think is in the cards for the Chinese.
@DW-op7ly8 ай бұрын
China actually has a oversupply of higher end homes but not affordable homes In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers. Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate. Even then, It took them almost 14 years to get their overheated real estate under control Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018 Why is their Central Government doing this? Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen. Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need In China Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married Thus the common prosperity push and the crackdown on the overt displays of wealth in China Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
@stephenbans5187 ай бұрын
@@NomadicAstro You can't force people to have children, they aren't rabbits. Once china fixes its cultural problem, then people will have kids.
@3506Dodge8 ай бұрын
Five years! Most of those apartments will never be sold or used in any way.
@backupkuzas8 ай бұрын
You don't have to go off the beaten path to find this. Tianjin, a second tier city with the status of being one of the 4 municipalities that directly answers to the central government, has an entire "manhattan" district sitting eerily empty, and unrelated to that development but notable on this subject, the world's tallest incomplete skyscraper siting abandoned as well. Imagine a structure bigger than one world trade center just empty and abandoned on your skyline, that's an embarrassing symbol isn't it... Skyscraper booms actually may be an indicator of the final cycle of low productivity and malinvestment in an overheated economy before a recession, and China has recently seen the largest in history as part of this massive real estate boom, it was so over the top the government put height limits on the countries cities.
@MainMan70127 ай бұрын
26 million unsold homes probably grossly understated.
@andrewmccoll15828 ай бұрын
If there is overbuilding, then developers should be forced to sell them. Is the issue that they won't part with them at a price they would accept?
@chriswhynder83118 ай бұрын
They built them out in the countryside with hopes the area grew which it did not leaving nothing but empty high risers with some of them not even finished
@andrewmccoll15828 ай бұрын
@chriswhynder8311 well, I hope a lot of developers lose their shirts on it. Unlikely as the real ones who made the decisions are now wealthy beyond compare.
@celestialtl7 ай бұрын
The USA investors bought them as investments by loaning the cash…and now they aren’t getting back a dime
@FinDDYouTube8 ай бұрын
The Chinese stock market is looking attractive, especially the tech sector. All these housing issues are not going to stop the Chinese people from using their versions of google, amazon, and Facebook on a daily basis. CQQQ
@DW-op7ly7 ай бұрын
No secret with their stock market with 85% of the trades made by mom and pops you will get wild swings from one way or the other
@jamesfung33478 ай бұрын
These are the lucky ones, many Chinese owned unfinished abandoned apartments with a big mortgage.
@andrewjones32518 ай бұрын
CNBC late to the news again. This has been going on for years!
@Patrick-yh5yd8 ай бұрын
CNBC looks at every angle to see if the rich will be effected first.
@williamwallace23868 ай бұрын
Let's say Home owners paid 1 million dollar for 500k USD home. Unfortunately, the developers also probably paid double for the materials to build the houses. Then the suppliers' cost to manufacture the materials is probably double as well and so on... They might be thinking that the credits will eventually be paid and there will be a return of investment in the future. Unfortunately, it did not happen. China created a pseudo income with these houses so it will be very difficult to navigate this crisis especially if there are no interested buyers. If they lower the prices of the houses, then it will affect the prices of the value of other properties like the 2008 real estate crisis in the US. with deflation now very rampant in China, lowering the houses will further collapse the market especially the banks who have massive investments in these properties. what a mess
@DW-op7ly7 ай бұрын
China still has a few hundred million rural migrants they still expect to migrate to the cities Only problem is there is no affordable housing being made for them only these higher end homes Be nice if these rural migrants could get their hands on these properties But my guess is they will get snapped up by the more well off Chinese
@SavanaT8 ай бұрын
The irony - in China they over built homes. In America - we under build homes. How about we meet somewhere in the middle? China is building great national / city infrastructure, while in America, our infrastructure is crumbling..... in China they aspire to buy real estate, in America, we aspire to buy trinkets, TVs and tech gadgets 🙏
@williamku29808 ай бұрын
How much of the US mutual fund monies are invested in those?
@brunoheggli28888 ай бұрын
Near zero!
@DW-op7ly8 ай бұрын
Probably a ton
@DW-op7ly8 ай бұрын
A 99% Bond Wipeout Hands Hedge Funds a Harsh Lesson on China Bloomberg) -- From afar, China Evergrande Group had all the makings of a killer distressed-debt trade: $19 billion in defaulted offshore bonds; $242 billion in assets; and a government that appeared determined to prop up the country’s faltering property market. So US and European hedge funds piled into the debt, envisioning big payouts to juice their returns. What they got instead over the course of the next two years is a harsh lesson in the dangers of trying to bargain with the Communist Party. The talks are now dead - a Hong Kong court has ordered Evergrande’s liquidation, and the bonds are nearly worthless, trading in secondary markets at just 1 cent on the dollar. Bloomberg
@grod8058 ай бұрын
Why would they be?
@weho_brian8 ай бұрын
thats why you should buy stocks and not mutual fund/indexes
@kyungshim64838 ай бұрын
With a declining population, how are they going to manage to sell those units? Yikes!
@adamyang9147 ай бұрын
That's my hometown. Glad I sold my apartment and moved to the US in 2019
@NomadicAstro8 ай бұрын
Cheap housing has always been catalyst for population growth in China. With slow down in the last couple of years, the Chinese got serious when it comes to riddance of growth road blocks.
@princesskaitlinhazelwood47038 ай бұрын
Why in the world do t they sell them for a dollar, so everyone can have a home? It is crazy.
@DW-op7ly8 ай бұрын
In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers. Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate. Even then, It took them almost 14 years to get their overheated real estate under control Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018 Why is their Central Government doing this? Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen. Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need In China Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married Thus the common prosperity push and the crackdown on the overt displays of wealth in China Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
@princesskaitlinhazelwood47038 ай бұрын
Just seems to be a shame to have whole empty cities when there are so many poor Chinese families with out a single home. Such a waste.
@williamwallace23868 ай бұрын
it's not that easy boy. the people who bought these apartments paid millions (overpriced units). now if the developers sell them for a dollar, then the original home buyers will definitely lose money since their homes' value will be tantamount to 1 dollar.
@princesskaitlinhazelwood47038 ай бұрын
Sure but having them sit empty is not helping th value either. Someone is going to lose and the ccp doesn’t mid if investors lose. Common prosperity
@williamwallace23868 ай бұрын
@@princesskaitlinhazelwood4703 Home owners probably paid 1 million dollar for 500k USD home is a big mistake for these home buyers. Unfortunately, the developers also probably paid double for the materials to build the houses. And the suppliers also probably paid double to manufacture the materials and it goes on and on. China created a pseudo income with these houses so it will be very difficult to navigate this crisis especially if there are no interested buyers. If they lower the prices of the houses, then it will affect the prices of the value of other properties. Other home owners that have money to pay their current mortage may stop doing it if they see that there are homes that are worth less than the homes that they are currently buying. what a mess.
@ostingonerazan64517 ай бұрын
as early as three/two years ago other institutions have shouting about this anomaly. and its only now that CNBC Squak box taking note of this. Shame on you!
@WellSalt-Studio8 ай бұрын
Americans first go to the supermarket near home to check the prices, which represents the fact.
@currentphonograph74878 ай бұрын
Invest in China. Love CNBC
@GK-qc5ry8 ай бұрын
I wonder if I'd in the meantime waiting for a buyer the properties start to fall into disrepair which further decreases the selling price.
@DW-op7ly8 ай бұрын
These were property developers cut off from money flow by their Central Government 14 years ago But they were recently saved as their Junk Bonds started to become hot commodities these last few years So as a Developer what to you do when you get an influx of Cash???? You build…. This is what was happening before this 👇 * Even though there are between 20 and 45 million unoccupied homes across China, which account for roughly 600 million square meters of uninhabited floor space - enough to completely cover Madrid, these places are not the urban wastelands they are often posited to be. While many of China’s new cities and urban districts are deficient in people they are not deficient in owners. Nearly every apartment that goes on the market in China is quickly purchased, often at exorbitant prices that commonly range in the hundreds of thousands of dollars. Far from being unwanted infrastructure that could seamlessly be doled out to refugees, those arrays of vacant high-rises are actually the proud possessions of people who paid a lot of money for them. So why would anyone spend incredible amounts of cash on houses they do not intent to use? * A huge portion of the homes that are purchased in China function very much like stocks or a trade-able commodity. As an incredible amount of new apartments are sold as unfinished concrete cavities without any interior fit out or even windows, they are in no way immediately livable. Although they are very actively bought and sold in this bare-bones form, which is often preferred by investors. In many ways they are purely economic entities, quantifiable placeholders of value that are traded on the open market akin to precious metals. Just as one doesn’t need to mold a piece of gold into something usable like a piece of jewelry for it to have value and an economic function, an apartment in China doesn’t need to have people living in it for it to be economically viable. “Empty units leave flexibility for quick sales in a changing market or need to cash in quickly,” said Barry Wilson, the founding director of Barry Wilson Project Initiatives, a Hong Kong based urban design firm. Another reason for the sheer amount of unused apartments in China is the fact that there is often little financial incentive for owners to do anything with them after purchase. There is no yearly property tax in China, so vacant properties are not a financial drain on their owners. While the potential returns that could be had from renting them out (1% or so) is often not worth the hassle - especially because it costs tens of thousands of dollars to construct the interiors of new apartments in preparation for tenants. This is combined with the fact that Chinese homeowners, especially investors who have multiple properties, are remarkably un-leveraged. According to Mark Tanner, over 80% of homes in China are owned outright. This means that most homeowners, especially the big investors with multiple properties, generally don’t have any mortgages to pay off or any other leans, so there isn’t as much financial pressure to make a profit from these homes in the short term. Thevagabondjourney
@toml11738 ай бұрын
In Canada, we are in short supply of millions units.😢
@cabbyw8 ай бұрын
All part of the natural exconomic cycle. This overbuilding issue happened in some many countries in various times. Market force will digrest them in time for sure. Not that big a deal, really.
@crazyfox58588 ай бұрын
Stay safe Eunice
@Trgn8 ай бұрын
Safer anywhere in East Asia than the streets of America
@artfquinn8 ай бұрын
@@Trgn But in China, you will get arrested because of statements on Internet. Including stating a fact.
@kenyup79368 ай бұрын
As Chinese we have property culture, if someone needs to get married , he needs a property,the parents woman side are super realistic in general,they won’t allow their daughter marry a man who doesn’t has a property , I don’t think any nation in this world is like us who is crazy about real estate . As average ppl like me, my salary is like $700 equivalent per month, a decent property in our city like $1 million, I def never ever have chance buy one, if I don’t spend my single money for anything, I still need to wait some decades can afford it
@DW-op7ly8 ай бұрын
Well the Chinese Government started to crack down on speculative investment in 2010 Hopefully you can get something affordable Ideally the Government should mandate these homes most likely built by bankrupt developers for people like you just starting out My guess is Rich Chinese will buy up these homes as an investment 😔
@jw9998 ай бұрын
Sorry to hear that man!!
@kenyup79368 ай бұрын
@@jw999im not trying to complaint, dont worry, actaully im leaving to this country, but my destination is not america, at least I could find some hope in somewhere else
@chunhchan7 ай бұрын
Property is for living not investment
@drunkntigr8 ай бұрын
bruh we know it's screwed. but what do you wan them to do? the worse they get, the worse it is for us. Chinese wealth depends on placing it on property, without a rise in property prices, they ain't going to spend, means less money for us. We will literally lose spending from 20% of the worlds population. And it will take decades before enough Indian middle class has enough cash to spend externally.
@incipidsigninsetup8 ай бұрын
The only markets that are flourishing are the US markets. If you're investing and stability is important to you, then there's nowhere else to go. Besides, there are more opportunities to gain wealth in a down economy if you've prepared for it and have the dry powder ready to take advantage. China's woes are a net plus, in my opinion.
@DW-op7ly8 ай бұрын
In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers. Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate. Even then, It took them almost 14 years to get their overheated real estate under control Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018 Why is their Central Government doing this? Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen. Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need In China Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married Thus the common prosperity push and the crackdown on the overt displays of wealth in China Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
@als86278 ай бұрын
Its funny. Its really the buyer in this case the Chinese their own mistake. Its for years already clear people pay more for their house than what they actually earn. They borrow money from uncles aunts to buy a house. To say own a house doesnt mean the couple. Sometimes 5 people own it. When a Chinese earns 8000 rmb a month how is it realistic to buy an overpriced 800,000 usd home of 50m2. They always thought government will help. And the house price will fly to the moon. No its not. Speculation means it needs to go down. Realistically its all should be 70% cheaper based on income. The issue there are so many issues and shadows that now nobody wants panic. So the government wants to bubble to pop slowly
@tonylinardi30897 ай бұрын
This is not a new development. This has been known and going on for over a decade. No cutting edge news here.
@nickphang22938 ай бұрын
U kidding ? Where have u been? We been voting yes for past 30 yrs, and nothing has change ! Same lies and lies! Where has the money goes? This time , vote No!!!!
@nicklasmillner1018 ай бұрын
As we pay exorbitant interest, on debt , no room to criticize.
@janosik1508 ай бұрын
So basically they build too much in wrong places ..
@Richard-s7m7 ай бұрын
Miss komichi should sticking with komichi fermentation.
@willtwain13838 ай бұрын
Kernen needs new shirts. He must have dried them on the hot cycle, or needs to sell the refrigerator.
@jmcc99548 ай бұрын
I hope the bubble pops soon here in the USA, the prices for ugly old looking houses are ridiculous at around 400k. Now imagine the new nice looking homes? Upwards of 800k
@abujabi8 ай бұрын
You're looking at $1.1 million for a 60 year old house with plumbing and foundation issues where I'm from.
@MichaelChengSanJose8 ай бұрын
Ugly homes in the Bay Area start at $800K, if you can even find one. Half decent homes are $1.6M and up. Guess what, home prices are only climbing higher as the people with money are making more than ever. Wishing for a massive 30-40% price correction like 2010 is a pipe dream. If you can find a 5-10% discount, jump all over it.
@brodobroggins8 ай бұрын
US has the opposite issue of under supply. Since interest rates are so high now people are also not leaving their houses they bought during the low interest rate era and that further reduces available supply.
@DW-op7ly8 ай бұрын
2.2 million in a home where I’m from
@DW-op7ly8 ай бұрын
In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers. Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate. Even then, It took them almost 14 years to get their overheated real estate under control Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018 Why is their Central Government doing this? Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen. Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need In China Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married Thus the common prosperity push and the crackdown on the overt displays of wealth in China Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
@Skullkeed8 ай бұрын
china is all about quantity not quality
@jacksmith-mu3ee8 ай бұрын
China builds Usa destroys
@kennethvenezia44008 ай бұрын
No, it's not, "build it, and they will come." They will not come because they don't exist in those numbers. With demographic collapse, it will never get better for generations, and that's providing they start having children again. I sadly don't see it. It's such a sad story.
@lokesh3031018 ай бұрын
Loan Rates for Unsold Units need to be 2% Interest Rates.
@jw9998 ай бұрын
It's weird to watch an Asian journalist travel in an Asian country (China), and seemingly take so much pleasure in explaining how everything sucks so bad...
@samyang14128 ай бұрын
That's like saying a Canadian reporting on a story in the US ... Eunice is Korean-American reporting on a city in China. Not all "Asians" are from the same country.
@DW-op7ly8 ай бұрын
CNBC is a little biased This was all by design by the Chinese Central Government In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers. Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate. Even then, It took them almost 14 years to get their overheated real estate under control Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018 Why is their Central Government doing this? Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen. Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need In China Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married Thus the common prosperity push and the crackdown on the overt displays of wealth in China Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
@jw9998 ай бұрын
@@samyang1412 No. It's more like a Canadian working for a Chinese company, traveling around the US and reporting back to his Chinese boss how everything sucks in the US. He does it in perfect Mandarin and with a gleaming smile...
@jw9998 ай бұрын
@@DW-op7ly Tks for the details, man! Well, pretty much all media badmouth China these days... After all, we always need a villain!!
@RacerX19717 ай бұрын
Now if we just stop buying from Temu, their economy would surely tank😂😂😂
@derrikarenal33088 ай бұрын
so, we need a ferry; excess people in Canada to empty housing in China.
@nicklasmillner1018 ай бұрын
This is insane! It's opposite of the USA , issues, sort of .....
@shaunmc0138 ай бұрын
Wow - such beautiful homes also, the answer to this is they need to create a multicultural society. That’s how the U.S. and Canada has been surviving..
@DW-op7ly8 ай бұрын
Somehow I think you are in the less immigrants crowd
@ProjectILT7 ай бұрын
And you haven't even talked about the tofu dreg build quality problems of chinese buildings where you never know if they're gonna cut corners on the building material for your high-rise and use "concrete" that falls apart if you scratch at it with your fingers
@GrantDobbie-fq5yy8 ай бұрын
How awkward the anchor
@user-fb6hy2eh5y8 ай бұрын
Kickbacks in the real estate sector...
@peterbedford26108 ай бұрын
Two word Joe..Jenny Craig
@robertdavis57148 ай бұрын
How bad is this, this Country in early 2000's in 2 years poured more concrete than that of the USA from 1900 - 2000 (100 years)
@chintandobariya4728 ай бұрын
Hong Kong was too over priced. It has to corrected.
@heneliezer14218 ай бұрын
PE of around 7 now
@esparda078 ай бұрын
There's only 7.7M in this city, we can't find enough people @.@
@xetradax26797 ай бұрын
such an unprofessional reporter, such a bad sound inside an empty building. how did they allow this to be on a tv?
@youarebeingtrolled69548 ай бұрын
If only all the young people in north america who cant afford a house moved to china🧐
@nicholascage36998 ай бұрын
1.6 billion ! Iam not worried
@MinchoRusev8 ай бұрын
Homeless issue is resolved 😅😅😅
@xieibrahim73048 ай бұрын
Hard to find any homeless people in the streets of any Metropolis taking Shanghai as an example. House bubble is a pure investment issue in China. Not like any other country.
@sara.cbc927 ай бұрын
Hey Yoon, how's the living hell that is S Korea? ^^
@robertlee63388 ай бұрын
Vhina Realestate meltdown is so much much managed than Lehman Bros
@Bmwstephen8 ай бұрын
import them to the US
@vitran41418 ай бұрын
We got some migrants that we can send them but they have a large unemployment anyway
@Richard-s7m7 ай бұрын
Just looking at the traffic flow at the background people,she is paid to lie.
@MarkDanielLouwe7 ай бұрын
Planning to visit Beijing this year to reconnect. Filipino-chinese here.
@CanadaTaxChannel7 ай бұрын
Sounds like what is coming to Canada
@Michael-o3h8 ай бұрын
Those ghost cities will be used eventually, the infrastructure is there. Manufacturing will move thete and so will the populations to work them.😅😅
@freedomstripe8 ай бұрын
Anyone remember the US housing melt down of 2008? This is going to be much, much worse. And the ripple effects are going to hurt the world economy’s. China is the second largest economy of the world. UK and Japan have already slipped in recession, and I think it’s going to get worse before it gets better better
@Trgn8 ай бұрын
The nature of the 2 bubble and recession is different. US was much worse because the banking and finance system had lots of subprime mortgages lending out to borrowers incapable of paying back, which led to the whole banking collapse. China current recession is just the slowing down of property market, lower house prices so a few developers went burst, but home borrowers are still able to pay the banks. Less supply of homes means their house prices will eventually rise again and the market will stabilize
@DW-op7ly8 ай бұрын
This was by design In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers. Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate. Even then, It took them almost 14 years to get their overheated real estate under control Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018 Why is their Central Government doing this? Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen. Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need In China Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married Thus the common prosperity push and the crackdown on the overt displays of wealth in China Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
@setheheart49117 ай бұрын
Eunice looks cold af lol
@expand94878 ай бұрын
I though it was iligal to report bad things about the economy.
@john_doe_not_found8 ай бұрын
Home values in China rose every year for 30 years straight. So an entire generation grew up thinking of homes as an investment. The CCP has the unenviable position of trying to plan a path for 1.4 billion to exit poverty. They sort of achieved it for 600M more or less. But there are still about 2 America's worth of people living in poverty in China who have not transitioned out of the small town rural life. If another America's worth of people did make that transition, then China would be back to building homes like crazy. If not, then, there's going to be several 10s of millions of empty homes that none of the poor rural folks will never transition to.
@jacksmith-mu3ee8 ай бұрын
Yeah then why sre American military bases near China ? Close them why don't u
@Mike_Davidson7 ай бұрын
Build it and they will come. Kinda like EV’s? 🤷🏻♂️😂😂😂
@chocolatesoldiertv72848 ай бұрын
China has houses that can accommodate everyone on earth x2
@youarebeingtrolled69548 ай бұрын
Theres millions of empty homes in usa and canada that are owned by chinese not living there. When that bubble pops its gonna make 2007-2008 seem like a fart in the wind😂
@JW-hf9ev8 ай бұрын
I’ll buy a house from China, I’ll use my Amazon Prime to have it delivered 👀
@nicklasmillner1018 ай бұрын
Will China import, people?
@Wuyifrom8 ай бұрын
Welcome to China my friends!
@jacksmith-mu3ee8 ай бұрын
Still better than usa
@MasterRichStocksOptions8 ай бұрын
😎
@SamEbby8 ай бұрын
unis is brave to be reporting on this from the belly of the beast in china
@jacksmith-mu3ee8 ай бұрын
How is that brave ?
@shawnsmith5248 ай бұрын
As china pop ages there will be millions of more houses on the market to sell/rent i think china needs wait good 30/50 years befor they start building again need wait for the Tofu to start collapesing
@DW-op7ly8 ай бұрын
Chinese these last few years are adding around 2.5 trillion a year to their wealth. Even with this downturn They can’t take it out of the country, returns from savings is not enough and the stock market is a casino For most real estate in China there is no property tax And for the Chinese you don’t own a home you don’t get married