China’s Real Estate Set to Crash! Northeast Apartments at $1,500, Middle Class Ruined Overnight

[@Velocus-p3z]

Where I live in China, housing prices dropped more than 50%. This is a disaster for people who purchased these units as investments.

[@tonytopcat1000]

Don’t worry Taiwan refugees will come and boost the house price. Taiwan after all is a province of the Philippines

[@ladislavzima8382]

Buying at the top of the bubble was a bad investment.

[@jnh2174]

But it's still owned by the ccp. You just get to lease it. Though you must pay it like you own it

[@tallaster-g7s]

@@tonytopcat1000 LOL no.

[@homerj806]

I live in a capitalist country and let me tell you something about investments. Investments are speculations. Prices go up, and prices go down. Best time to bail on an investment is when prices go up and the signs show the price is unsustainable. That whole sales pitch by Chinese real estate agents saying investment properties will always go up is just that; sales pitch they memorized from a script.

[@slincolne]

So the price of Chinese apartments has dropped to match the quality of their construction - almost disposable ?

[@SuhaimiMohamedShariff]

😂😂

[@BobWing-x1m]

2 X 4's and plywood sheets I could build a good house!

[@TheChefDWC]

Some of the properties were never even completed. In China, it was standard practice for developers to sell properties before the building had even been completed. The developers would tthen ake this money and use it to launch a new building project. The homeowner would be left with a toxic mortgage for a building that wasn't even completed. Now that property values are dropping, things are even worse for many owners. After all, who would want to buy a partially built property of dubious quality? All of China's major developers are now bankrupt as a result of having overdeveloped and overleveraged their building projects. Not only have homeowners been left with mortgages for properties that are not livable but construction workers have in some cases, worked for 8+ months without payment.

[@sleepinglaffey3886]

MAKES ME IRRITATEE🍯 把路堵死，然後研究如何打通 把人隔離，然後研究如何促進消費 把企業搞黃，然後研究如何解決就業 把外資嚇跑，然後研究如何招商引資 SO GOOD WOW RICK SHEA

[@BobWing-x1m]

@@TheChefDWC 8 friends got caught up in the quick money making scheme, lost more than everything. 2 in prison, 4 disappeared and 2 made it back to the states.

[@danielgareth4205]

Wow this is very interesting to see how the real estate bubble bursts. Thank you for these videos!

[@FadingVitals]

When you have 800 Mio people and build houses for 2 Bio people…

[@sclerodermasmarter2742]

So people bought property with the plan to flip them rather than live in them?

[@douglassun8456]

Exactly. Real estate was pushed on them as an investment, and there aren't as many avenues for private investment in China as there are in Western countries.

[@Rusty-b1g]

​@douglassun8456 👈 he's right, the methods for preserving wealth in durable assets in china are almost exclusively restricted to real estate. Of which, land permits for buildings are only extended to 17 years. This is a significant reason why tofu dregs or rapidly deteriorating new buildings aren't just a product of insufficient standards but also a product of insuring that the same piece of land is garenteed to sell routinely.

[@EzraMerr]

Not even flip, they hold it for speculation, because prices were going up tenfold since 2010 and boom crash 💥

[@Viddub]

@@EzraMerrthey didn’t have anywhere to put investment funds. Chinas stock market is risky and foreign investment is not allowed. The state allowed citizens to buy homes, this started the boom as many do not fully understand the situation

[@sclerodermasmarter2742]

@@Viddub so why don't they live in them then?

[@billyjoesmo8251]

Are you telling me that the CCP is not the best economic forum for success😮

[@abby-a]

Why are you surprised? Most countries that are on this planet are struggling 😂😂😂

[@Myrinrewind]

@@abby-a the comment is referring to the many flaws communism brings most blatant is the corruption,along with the lack of innovation

[@Meitti]

Planned economies tend to fail because economy and business by itself is too complex and chaotic to fully control.

[@karylhogan5758]

😳think you should turn yourself in,slandering the faultless ccp.🙄

[@doodlegassum6959]

How is this bad? Free markets should be allowed to correct. Tremendous courage shown by CCP

[@zeorhymer6]

All those rows of condos sure look like tenement housing from old USSR or East Germany.

[@bluedrakken]

china copies every other country houses blueprint with lower quality material.

[@BobWing-x1m]

In 2009, friends wanted me to invest $250K in Guangzhou on real estate. They ended up borrowing millions. Today, 2 in China's jail, 4 on the run and 2 are here working to pay off borrowed money. I only had about $10K back in 2009, but invested in utility stocks. Now they are in the 6 figure category.

[@anb2456]

5:10 so many Chinese property owners are in NEGATIVE EQUITY - when you're mortgage is higher than your property value

[@lucforand8527]

Can you imagine what the state of these buildings will be in 10 years? I'm sure that any building maintenance fees will disappear faster than they can be spent!! Don't buy condos as an investment! The only way its worth it is if you would pay just as much to rent.

[@tedthesailor172]

If these tenements are recently built above coal mines, watch out for subsidence...

[@Ghettodachoppa87-kf6ml]

1900 CDN for a house, dang its about $500,000 to $1,000,000 in Ontario Canada but those houses wont sell and will slowly rot, prolly already moldy.

[@raevj]

They do not own the land the buildings sit on, there is only a 70 year lease from the CCP to the date it was bought by the property developer, not each individual property sell year. So, if the CCP leased the property 10 years ago to the property developer, they only have 60 years left, even if bought today.

[@midbc1midbc199]

A house in Canada won't crumble and fall down on you like tofu dreg houses in China. You also have to factor in the locations

[@lianghou7000]

@@raevjit’s effectively the same thing, it’s just not prorated like ad valorem tax. People are more so surprised with the reality of cheap housing. Why buy an apartment when I can find a place for less than 2k rmb in majority of places in china?

[@min57822li]

School without teacher, supermarket without products, hospital without doctor. No value. It's garbage

[@mattanderson6672]

Rise up People of China

[@richardsuggs8108]

Rise up and read Adam Smith’s The Wealth of Nations and the Theory of Moral Sentiments. Realize that the CCP is not the example to follow.

[@RachellMangosan-mv7dw]

That would be good if they rise up, but the problem is ccp and Xi jinping enhances the people fear towards making them unable to stand up and figth.

[@danielgareth4205]

"The once widespread belief that housing prices will only rise, has been shattered." This is the core issue of the wisespread "speculation mindset" in China. People bought homes at extremely high prices - just to sell it for a even higher price. Rent or cash flow didn't matter at all. Just by high - and sell higher. It can only go up, right? The one man in the video bought the house for 10 million yuan! 10 million yuan (1.3 million Euro)!! I'm sure he thought he can set it for higher price. He's now ruined because the house is worth only half. This is speculation, not investing.

[@roberts.3712]

Half is better than nothing.

[@zeorhymer6]

@@roberts.3712 He's still in debt because he borrowed money to try to make a quick buck.

[@phillipanderson9925]

Yes and they have been buying in other countries hoping to cash in to pay off the debts in places like New Zealand and Australia but now they are in most expensive in the world territory which it’s believed it’s different here etc but houses should be not for speculation but to house people to allow families to live and provide for their families. This house of cards needs to be reassessed globally

[@uxb1112]

Hard to cry for rich people!

[@joerudnik9290]

People knew about the empty, unfinished buildings. Did they think that was normal, construction procedure???? Why would they finish ‘your’ building and not the thousands of others?? It was delusional.🙄🙄🙄🙄🙄

[@iEtthy]

Goood. Housing should never be a commodity.

[@garypowell1540]

I proclaimed with confidence 2 years ago that Chinese Real Estate prices would fall by 90%. However, it seems that I was wrong it will be more like 98%. So much for government central planning. Even at these prices the Rural poor can't afford them as they will have no way of sustaining themselves without any kind of paid employment while having to pay service charges and for food that they would otherwise get for next to nothing. These types of people are also unsuitable for living in these kinds of buildings as Rural Chinese are incapable of looking after anything unless they get paid to do so. They would soon become dangerous slums as no one is going to pay their service charge bills. Who in right mind would wish to live on the 30th floor anyway especially those used to having their feet on the ground surrounded by countryside and edible vermin? The CCP has been acting like a 1960s Labour government on steroids and the inevitable consequences are now here but on a magnificently larger scale.

[@zyrtor1]

I saw this coming 12 years ago when I met my wife. I told her these crazy prices are going to crash epic bad. There were some economists pointing this out years ago too.

[@uxb1112]

​@@zyrtor1I told you so!

[@WarH]

How can you say nothings missing when you don’t have the people? Isn’t that missing?

[@tlarus1]

Those are sale prices for the unit? Not monthly rent?

[@Ghekko-kw3zz]

The population ain't there.

[@xhagast]

Why aren't people scared of debts? At 6:40 a guy says that he bought 4 properties paying 20 to 30%. Now their value dropped, and they are worth less than his debts. He cannot sell them. If he had bought ONE, he would have the money he saved since AND the value of the property. And no debts.

[@star_duck]

Real state is of the only allowed forms of investments in china so buying houses is like buying stocks

[@nicholasrockall7308]

it's a Chinese thing, they think they're getting a good investment with potential high returns, so they're not afraid to take out crippling loans, they all get themselves into debt because of greed.

[@rebeltheharem7028]

He took the gamble and lost hard. This strategy wasn't uncommon in other parts of the world, especially the US, except that in the US, you can at least get rental income to match the interest costs or more. But this is considerably harder in China, where you would be lucky to get even 50% of the interest costs covered. So he banked on the homes appreciating beyond the interest rates, so he could sell them later. It was the typical leveraged real estate play. The only difference between them and the US is that we are allowed personal bankruptcy here, so if you lose, you can just declare bankruptcy and wipe out your debt (and in some cases, keep your primary home). This is not the case in China. Personal debt sticks with you forever, so these people are basically screwed forever. The interest on the debt will stack to infinity since they can never go away. He wanted to play the game of bomb toss, but ended up with the bomb.

[@xhagast]

@@rebeltheharem7028 He played a Western game by Asian Communist rules. He should have known better. It is the same game many play with crypto. The longer it takes the bomb to explode the bigger the explosion and the greater the damage.

[@sreenivasavadlamudi5164]

Same story in Canada

[@roberts.3712]

Once the Trump tariffs start they will be almost free.

[@copsaremonkey6970]

😂😂

[@amandab8433]

Yay Tarrifs! I can't wait for prices to skyrocket here in the US. 🙄

[@lance8080]

@@amandab8433 buy American, don’t buy from communist 🇨🇳

[@owenb8636]

​@amandab8433 seriously it feels like none of Trump's supporters know what the effect of tariffs actually are

[@tallaster-g7s]

@@owenb8636 Yes how dare Trump prevent slave labor products being sold in the us.

[@ianfarquharson3772]

China has the stupidity to call their security system as a whole "Sky Net" ????? Has no one watched Terminatior😂💀😱😅

[@martinrowland2593]

Hasta la vista, baby.

[@uxb1112]

Well maybe it's a Chinese story in the future not an American one . Cue to robot asking round for Li Su while clutching a page torn from the Shanghai phone book.

[@markmk44]

This should be the real price of housing because majority of Chinese only earns 3000 to 20,000

[@TmoneyOGGamer]

There’s no free lunch

[@anb2456]

04:30 "Come to live in Hegang, Heilongjiang. It's so cheap" No, thanks

[@ChrisforChristJesus]

Chinese apartments prices drop almost as fast as the buildings there in.

[@fialee8]

Who took advantage of you? It was your own greed that convinced you to buy all those units.

[@micheltibon6552]

Hope the heating is working. It is on the border with Russia above North Korea and almost on the same height as Sapporo Japan. It is minus 21 degrees Celsius at the moment being night time.

[@Caz-z1x]

Is it really? I don’t know why I assumed Asia didn’t get snow except for up in the mountains. I guess cause I never really watched videos of countries in Asia till recently.

[@jmwSeattle]

Why were Chinese so confident about communist economy?

[@CyrusTheGreat-b3k]

Chinese are not confident and they can’t speak against communism. CCP decides fate

[@danielgareth4205]

@@jmwSeattle China is literally one of the most capitalist countries on earth since the 80's

[@jesusramos778]

Everyone complains now but when everyone knew it was an unsustainable bubble nobody said sh!t

[@zzdlover2005zz]

It would make me question about the tofu building if it is this cheap.

[@Paulg51-73]

Jiaxiang horrendous smog

[@engil2534]

I don't understand how China has way too many houses and the US has way too few.

[@克羅斯-j7e]

sweat country

[@Stealthmodeon]

One country has a declining population, one has increasing population... Supply and Demand. Housing prices in the US are going to drop with the expulsion of illegals = more housing availability = lower prices! Associated bonus, Less labour availability = higher wages! WIN!

[@wheezysqueezebox7651]

Cheap place to lie flat! Better than living under a bridge in Shanghai and delivering food, or live streaming in the freezing cold!

[@calvincoolidge1207]

If it is 2,000 Yuan a month it is horrible deal. I rented a nice 2 bedroom apartment an hour from downtown Nanjing for 1900 a month (or 2,000 if you add management fees). Heating is extra but optional. You can survive in Nanjing without heat but you will be a little uncomfortable in winter. Nanjing has a much better economy.

[@silvestertheblack7422]

We need this problem in germany so hard!!! Houses are too expensive and our generation have no chance to earn enough money in our lifetime 😭

[@raevj]

Deport all your fake refugees, they drive up property prices very quickly bc it lessens the supply available. Deport, deport, deport.

[@junicohen7918]

You will keep importing people and voting for the parties that cause the problem though

[@jetfa9]

Ya i have family in Munich...its so bad

[@anonymousnoticer]

Give it a few decades. The housing market will crash everywhere it's unsustainable.

[@silvestertheblack7422]

@@jetfa9 ok, munich is the most expensive city in germany. i could never affort to live there.

[@dwiss2556]

I really wish the tier system would get more clarification in these reports, since there seems to be a variety of them.

[@kommieyum9723]

History repeating itself

[@youcantata]

Don't worry. Japan experienced the same real estate bubble-busting back in the 1990s. But it is eventually recovering in the 2020s. So just hold breath and wait 30-40 years, then all will go well. Just endure and survive 30 years of economic stagnation from now on, just as Japanese people did.

[@lophilip]

I'm not sure you can call Japan an economic recovery.

[@HungoverHistorian-zf6gi]

Japan, despite some issues, is a liberal democracy and not a dictatorship with command economy. China won’t absorb the shock until CCP admits it was bloody wrong and change course. And dictatorships simply cannot admit they were wrong.

[@Mochiandtaco]

Hopefully…I just wouldn’t put trust in the Chinese government to make right decisions to help the country

[@ladislavzima8382]

Unfortunately China overbuilt the houses. There will never be a population to fill even half of them up. Especially with the demografy progress.

[@williamloh4360]

Wait 30 yrs, you must joking. At say age 35 you are saddled with a large housing debt and by the time you are 65 then the property recovers. Do you think you are still there to see your capital recovery not to mention all the interest accumulated over the years!

[@andreabarrington3239]

China is in a Deflationary period. Many people are unemployed and it is very difficult for them to find jobs. They have had a real estate, auto and manufacturing crash. In addition, they have had multiple floods that have wiped out their crops. What is happening to China is going to happen to both the U.S. and Europe also. It will be a domino effect of bursting bubbles. Everyone's equity will be wiped out. It is not something we should wish for. I hope that they can recover from this. The government just gave the banks a massive influx of cash to keep them propped up.

[@Ghekko-kw3zz]

That's chicken little ish. Reality is the economy reflects fundamentals- people & resources, then quality of management.

[@MeongMiao]

Is that even communists?

[@twostate7822]

Why are the top floor units 10K yuan, middle floors 15-20K, and the 1st floor units 40-50K? Don't these places have working elevators? In other parts of the world, the higher floors command the premium prices. Are people worried that tofu dreg buildings will fall down and that the top floor is less safe than the bottom floors?

[@frankdunnage9387]

Cost of heating is very high o top floor according to report. This part of China suffers frigid winters

[@twostate7822]

@@frankdunnage9387 Very high cost compared to what? The only difference in heating floors should be that the very top floor doesn't have a heated unit above, but supposedly the ceiling is insulated by thick concrete so how much more expensive is it to heat compared to lower floors, since winter is only a few months a year, and all the units will have a number of large windows which even if double or triple paned are leaking heat. That also doesn't explain why mid floors are also more expensive, since they have heated units above and below.

[@jesusramos778]

This is actually good for millions and millions without a home, they need to rush and buy one. Too bad for the ones who bought at the crest of the wave though

[@ZverevDL]

Damn. Their apartments are so cheap.

[@RatTerminator]

Tofu stay away

[@haianh3936]

Thank you buddy

[@marrow-zp7zt]

Anyone else getting some Terminator wibes at 16:47 - I wouldn't trust a Skynet?!

[@michalksi2377]

Great channel 🎉

[@HKim0072]

2000 yuan / month in fees and utilities? That seems like a fortune for that area vs job pay.

[@chrisw.5138]

And 99% of the buildings are flat-roofed, I wonder how many owners will actually be able to live in these buildings for seventy years, they are not known for their good quality standards already...

[@warrenb8228]

They have more houses than people… uhhhh….

[@leletipiham8156]

I wonder why they don't estimate the new buildings with the population

[@lharwest1571]

It still puzzles me.. why would anyone buy any property in China if they are going to lose in 70 years?

[@notalpharius2562]

is close to Eastern Europe prices for year-round electricity bils, speaking about that 2000 yuan by the current rate, which is 275 usd.Which looks like nothing but for a city that is empty is a bad deal....

[@LaiChingLeong-p6i]

Hasn’t this gone on for some time already? Is it still imploding?

[@uxb1112]

I must admit that crying for rich people, even Chinese rich people, is a little beyond my capabilities.

[@mohdsafuan3925]

Consequences of ccp & greed

[@antoniotejuco]

How about the quality like a tofu? Hopefully it wont collapse in few months.

[@TerryGaskett]

Where are the prospective buyers, back living with country family 🤔

[@SeosamhMacUaid]

"You will own nothing and be happy" WEF

[@frankgriffin6293]

If I was in China there is no way I would have bought a home. I would have just rented. Not actually owning the property after 70 years is a rip. If anyone paid attention to America they would have seen what happened in 2008 property wise. If someone had saved cash they would be living it up with the deflation.

[@jackhydrazine1376]

So many housing loans are under water now. Round and round the deflationary spiral goes. Where it stops, nobody knows!

[@Luminousplayer]

You cant say "dont buy" and "sell asap" as advices at the same time lol

[@larzkruber822]

Looks like some prices finally reached the bottom Thats when people start buying

[@EzraMerr]

If you let foreigners buy assets without stupid regulations this would be an easy resolution

[@doodlegassum6959]

Hopefully China exports this "problem"

[@Taketimeout3]

I would’ve very happy doing my work from such a home. Or… Surely one can move one’s family to live in such a cheap property while one works where wages are higher, maybe on a ship or building site.

[@scottgordon1781]

Er , please , this was happening in 2020 , Evergrande , then Country Garden , now Vanke ? Seriously , who would want to buy anything from a housing company that is basically bankrupt ? Even if completed , who would stay in them ? Not enough Chinese !

[@eduardoarce5660]

It means you can't move forward and can't go back, very bad

[@JoeBlow-fp5ng]

Something is not right. I don't believe it.

[@bobh9492]

Look at the temperature of that city during the winter.

[@rakashaagain]

it's basic economic, population shrink and there is way too many houses. Without immigration it would the same in the west, it SHOULD be that, housing shouldn't have been speculation but government mass migration are destroying the population while sustaining fake price.

[@walterkreuzman3802]

I guess they don't teach Finance 101. They played and now they are paying

[@Omar-m9k7p]

Sounds like time to buy.

[@Erebusdidnothingwrongish]

0:03 that's amazing!!!!!!

[@Hugoleewx]

Cheap houses is a problem?

[@ryanmac8283]

How the hell do you afford fifteen hundred a month in china? It’s hard in America let alone china.

[@YLL-r5x]

President Xi is satisfied that the cost of living in Mainland China is affordable now. Everybody should praise President Xi. I am sure every little pinks in Mainland China should be crying with joy over the cheap cost of living.

[@YLL-r5x]

Long Live President Xi! Congratulations on the launch of the first communistic revolution since the launch of the Great Proletarian Cultural Revolution in 1966.

[@anthonymorris1360]

What's China's tourism like? I'd rather go to Yemen.

[@kori6239]

Another boss is arrested正荣地产， even the best real estate company Wanke has big problem this year, too much debts to pay. The core problem is the birth rate which is too low. The population determines the doomed future of real estate market

[@TwinRiver100]

When you say Tiktok, do you mean Douyin?

[@nohopeequalsnofear3242]

It's still nicer & safer than Detroit & San Francisco

[@gallardoo9]

China is in a recession like many countries are now and young people are not having children as they cant afford them always wish I would have found a chinese wife to have children with as I can afford them..hope all gets better

[@milesfreeman3306]

The same thing will happen with Chinese EV.s

[@DeenaMilkers]

2:40 dear god, they cant maintain a lane to save their life lol

[@daveg-Vancouver_Island]

Soooo, the lower you are in the building the higher the cost? That’s the opposite of most places, usually the higher the floor, the better views etc equals more expensive, maybe in China the lower floors cost more cause you have a better chance to escape when the collapse? Lol

[@vincenttay2812]

Take care of your own backyard first

[@Notguilible]

Good

[@kolise_koll]

😂😂😂😂😂

[@kennethvenezia4400]

Good, let Jack buy them

[@fredlacroix6865]

tofu dreg crumbling down

[@MarioLuigi-vb3rp]

Hopefully the tofu dreg homes don’t fall apart

[@timmyv6176]

i pay 10000 per month for rent :( maybe I should move

[@nealkelly9757]

As an American, I wish we had falling housing prices

[@tristanwhitehead6029]

you said "overpopulation", then a minute later: "lack of population". Can you not do some quality control and checks if you want to be a news channel?

[@christophe2496]

2025 RIP !

[@Michael-o3h]

Fellon adong chronic liars😅😅😅😢

[@j562gee0hdeewestsdegethemuLa]

You make a living by drawing online good luck gpt10 is coming .

[@RatTerminator]

GOOD 🇺🇲

[@Myrinrewind]

got to ask did we watch the same video

[@RatTerminator]

@Myrinrewind A LIAR is always a LIAR I wouldn't watch that Woke BS proram& network if u paid me

[@MeongMiao]

Price? They could get paid for their job not for the land or property, that's belong to citizens. Greed offers nothing except ruins.

[@DinaldinaKowa-d8l]

How about RE market in the USA?