Why China's Crazy Housing Bubble REFUSES TO BURST!

This is getting ridiculous! Housing prices in China have now got to the insane price that an entire year's salary can only buy you 10 square feet, so on average it takes 900 years of salary to pay for a small 2 bedroom apartment in the big cities... Why? What's going on? How is it that this market hasn't exploded yet?
For a deeper dive into China's Propaganda influence and soft power, watch our liveshow ADVPodcasts: / advpodcasts
Support Sasha and I on Patreon: / serpentza
Bitcoin - bc1qxfjp2t6x5dpslv59u0jl89m6k643hcn8h2jsvp
Ethereum - 0x6Da150a2A8529110017Ed4db68B3dF0084900280
DOCUMENTARY LINKS:
Conquering Southern China:
vimeo.com/onde...
Conquering Northern China:
vimeo.com/onde...
Stay Awesome China (my new documentary): vimeo.com/onde...
For Motorcycle adventures around the world, and a talk-show on two wheels go to ADVChina every Monday 1pm EST
/ advchina
For a realistic perspective on China and world travel from an American father and a Chinese mother with two half-Chinese daughters go to Laowhy86 every Wednesday 1pm EST
• Chinese People Won't T...
For a no-nonsense on the street look at Chinese culture and beyond from China's original KZbinr, join SerpentZA on Friday at 1pm EST
/ serpentza
Support Sasha and I on Patreon: / serpentza
Join me on Facebook: / winstoninchina
Twitter: @serpentza
Instagram: serpent_za

[@ItsTimePictures]

My ex in China lost 70% of her assets in that crash. I tried warning for for months on end and she wouldn't listen to me.

[@manydirt2600]

My ex was Chinese living in America and wouldn't invest, even to get her company 401k match. She was a stats masters or something and should've known about the math but wouldn't do it anyway. I wonder if it was a cultural phobia.

[@lamentate07]

They have new money syndrome and are convinced that property values will continue to rise indefinitely.

[@SandmanMGTOW]

It's spilling over into Canada, Australia and the USA.

[@JD-pp6ze]

True

[@Kukimuncher]

Philippines too

[@viewtifuldesign6793]

verified in Toronto.

[@boooomerwang]

The commies never died. They just put on another coat called fascists. Never change CCP.

[@videomonkeyman]

Most people don’t realise we are in the middle of adjusting to a booming.China.

[@genepozniak]

Wow! When I was an undergrad in the 80s, I wrote a short sci-fi story about a future dystopian society where the economy and jobs were almost entirely driven by just such an endless cycle of build-demolish-build; but it was based on extrapolating a future US economy, not Chinese. lol.

[@___________2204]

wow

[@aoeu256]

We need to measure happiness directly not GDP haha. On the other hand imagine a society based completely on improving productivity and improving health.

[@doobas2171]

@@aoeu256 GDP per capita is productivity

[@doobas2171]

@@benchoflemons398 Productivity can be measured by GDP per capita, thats literally what it measures lmao. Who should I listen to? You or my macroeconomics textbook?

[@bargainbassist]

Reminds me of some great sci-fi/dystopian music on the theme of endless recycling: the album “Recycled” by the ‘70s German band Nektar. It might not be for the faint-of-heart, so check it out! 🙂🎸

[@BobbyGeneric145]

When I was a broke flight instructor living in Phoenix in 2008,many of my coworkers were getting rich flipping houses... The market was so insane they would already have a deal lined up to sell before even closing on the purchase! When it all came crashing down, guys who were making 30k usd a year in salary were left holding MILLIONS in mortages that you couldn't sell for 50 cents on the dollar. I didn't understand the logic in it all so I wisely stayed away.

[@joshuasterling2144]

That's because they used leveraged debt to get more properties. Your goal should be to pay off the mortgages or at least a percentage of them to hedge against exactly what your talking about. Also during housing crashes it becomes a renter's market which property owners can permanently or temporarily pivot to.

[@lamentate07]

@@joshuasterling2144 Yes, but when the music stops, what do you have? I guess it was easier for the older generations to use buy and hold strategies.

[@FormerGovernmentHuman]

It was a good game if you were willing to accept the music wasn’t going forever. It’s about to happen again, banks are doing the same shit under a different name. Stock market has so much bad money in it from first time investors that the moment it takes a hit it’s going to turn into a hemorrhage.

[@frankxu2321]

When you are both the player and the referee you will never lose : )

[@ritchierich2793]

Damn.. that's a great analogy..

[@KevinPhillips_kw]

Didn't you know? Communism always loses.

[@KishorTwist]

Serpentza and his buddy Laowhat's-his-face are two massive losers though.

[@svenshruufx7380]

@@KishorTwist who's the bigger loser, the loser or the one who comments their KZbin video's comments?

[@KishorTwist]

@@svenshruufx7380 👏

[@dfv671]

"If you build it, they will buy" only applies to first/second tier cities. 3rd and less tier cities are already suffering.

[@AW-lq2zv]

tier 2 cities in the north have been getting hit too. Tianjin since 2017 is down 21%. My landlord in Qingdao has been trying to sell my apartment for the past 2 years and only 2 ppl have come by to look at it. Just recently negotiated 15% off my rent 3 months ago. Can only see that number going down in the near future.

[@hstad100]

"If you build it, they will buy" ? That's a misquote of the line from the 1989 movie “Field of Dreams”. Poor analogy no applicable to China. Firstly, who's buying? Most buying today are 2nd and 3rd dwellings which most people can't afford. Therefore, it's not for shelter but pure speculation. But we all know that's an economic reality of local officials grabbing land to sell to developers for tax revenues. However, the real estate party is about to come to and end the next 5 - 10 years. There are over 65 + million empty dwellings. Who will move into these dwellings when over the next 10 years the demographic decline (fertility rate) will see people retiring to almost 20% of its population. China can't stop this - it takes 20 - 30 years to grow a productive adult from childhood. This will not end well for China's economy.

[@dfv671]

@@hstad100 I agree! Good observation.

[@taoliu3949]

@@AW-lq2zv Tianjin is technically tier 1.

[@kcarrier59]

@@hstad100 Entire "ghost cities" that will be a big write-off eventually.

[@Raptor302]

This explains why they are so ecstatic about buying in the US. "What? You mean I get to keep the thing that I buy??"

[@jrbb1837]

You get to keep your house in China too but you pay 2% of the original value to renew for another 70 years. Similar to property tax in US. Keep in mind there’s no such thing as property tax in China

[@spartancrown]

I’ve lived in the US my entire life. I love the US. It isn’t perfect and has many flaws as any man made thing would but ownership of land is a bit of a myth. Stop paying your property taxes and suddenly it’s not yours anymore.

[@Raptor302]

@@spartancrown Fair point, especially coupled with Eminent Domain.

[@bargainbassist]

@@Raptor302 I strongly agree. But China is a case of eminent domain on steroids.

[@randomchannel-px6ho]

No one really knows how the 70 year thing will work out. Who knows what China and its government will be like in 2050...

[@noahway13]

Concrete boxes. Exactly. Most soulless architecture I have ever seen. I'd be depressed every day if lived there

[@peterwarner553]

It seems to be a Communist thing

[@noahway13]

@@peterwarner553 Hmm. Good point.

[@azzking9305]

Creativity isn’t chinas strong point

[@rasikadurbule3025]

@Đức Trần it's soulless

[@Astromamut]

I live in a concrete box. It looks nice if it's surrounded by trees. Like a big rock in a forest. It is ugly without trees tho.

[@non-wx8qm]

I never realized the, "ownership" was really a seventy year lease from the government.

[@ceoatcrystalsoft4942]

You cannot buy land in China, only lease

[@slickrick2420]

Not that different from the USA. You pay property tax

[@patrickt49]

@@slickrick2420 The difference though is that if you have kids, they can inherit your property and keep it so long as you keep paying property taxes. In China, you will inevitably go back down to zero unless you sell your property to a sucker willing to pay an arm and a leg for a shoddy apartment that's overvalued.

[@Connetification]

@@patrickt49 You can renew the lease for another seventy years. If the government decides to break down the building, they will compensate you. How much compensation though, I don't know.

[@zilun]

Yeah, taking out loans from state run banks to prepay 70 years of rent, as "purchase". What a joke.

[@jmshwood2801]

Serpentza: "There is no religion in China, rather than greed!" You're so right! As what I have experienced in dealing with many Mainland Chinese people; they're only good to you if they see they will get benefits from you.

[@doobas2171]

@@tomzhouschannel968 ???? Do you not understand finer English? He obviously doesn't LITERALLY mean it's a religion, have you never heard of figuratively? And the point still remains that religion in china is either red washed or stamped out

[@melvinf78]

As if religion is something desirable for the world. Religion is obviously an outdated thing, and human beings should have outgrown it since science was discovered.

[@arikalamari19]

hm there is a well known paper published in the studies of humanities where it explains how the christianity in America differs from those in Europe as the higher God people pray in the USA is $ money

[@rubyy.7374]

@@melvinf78 The thing is that people as a whole literally need the fear of god put into them if they’re to behave themselves and live morally. To that end, I see religion as a very important element of a well-developed society.

[@melvinf78]

@@rubyy.7374 Sorry I have to disagree. Those who have to resort to the fear of God to find the sense of responsibilities are actually under-developed peoples.

[@HungrylikeaWulff]

„80 square metres, the size of a living room“. Bro thats a big flat in europe aswell. *cries in european*

[@untheo]

Yeah. In Moscow most of the flats have 20-40sq meters. And you will be lucky to rent 40sq meters for less than $1000. Right now i'm renting 20sq for $700

[@skullfc4215]

In Panama that's a $165 K apartment in a centric Area

[@drunkenmonkey1887]

For reference, 80sqm is the minimum standard for a new build UK home, for 3 bedrooms housing 5 people.

[@markusajo5007]

True :D I've seen advertisements for 17m² flats. 80m² is huge for one/two person

[@menguardingtheirownwallets6791]

You just described the real estate market in Toronto, Canada, 100%. No one invests in stocks, they all invest in condos and houses, often renting them out for less than what the mortgage costs them, all in a hope that the rise in prices will offset the losses from the mortgage payments.

[@Francois424]

In Montreal too it's becoming more and more common. Price of a 5½ increased 50-60% in 5 years. MTL Suburb Houses went from 300-350k to 700+k in the same time. I've heard and seen 3½ go to 1200$ CAD/month. It's absolutely insane. And then they have the balls to complain about ppl leaving the city... Well DUH ! You inter play the market and get rich (barring bad luck), or you decide not to play that game and move away. Wages aren't keeping up AT ALL with the sudden increase in cost of living either. This does not bode well.

[@kaputasri]

@@Francois424 This why I will never ever buy overpriced property.Would rather rent someone must teach these greedy asshats a lesson.

[@butuotrhyyhn4727]

@@kaputasri except renting is also fucked by the same owners

[@doobas2171]

That's from chinese foreign investing

[@cashkitty3472]

It different though because China users this in there growth fissures so they are happy these buildings are build that might fall down as the growth is calculated if it had to be rebuilt and then they can attract investors .

[@azzking9305]

Australia has reached the point where in the city of Sydney a 2 bedroom apartment costs around 4 million dollars, how anyone buys a house these days I have no idea

[@resultspaid7250]

That's the same way I felt when I lived in China. Who can afford to buy these boxes- only wealthy speculators who got in early. I think it's just speculators selling to other speculators. The people who actually live in them are renting.

[@rook1196]

bitcoin is still new. property for now remains the gold standard when it comes to money laundering.

[@jebes909090]

The chinese are driving up housing prices in all countries.

[@elishh8567]

Same in sweden except on the countryside where there are no Jobs so you cant afford to live there anyway. E Almost all apartment owners in the capital and 3 biggest cities take bankloans and pay for apartment that way and then live in the flat and pay off the debt little bit every month but basically the banks own the apartments.

[@rowancrouch4789]

Build in the suburbs and pay it back over 30 years.

[@teabaobaochina]

I am surprised how accurate your observation and description of the current housing situation in China, as a native Chinese citizen, my two cents are China is facing a very critical and extreme difficult choice, which is to let the bubble burst OR let the housing market keep dragging down small businesses, jobs, newborns and overall consumption. My take is that the government is executing a slow steady "burst" rather than another financial crisis, but from the look of it, it may take decades to actually solves the current crisis, so to put it simply, China is facing some nasty problems that will hurt the entire population no matter what. Another great example of showing that planned economic might has some advantage in the short term, but it will bury itself because no brains can match the efficiency of a free market.

[@Harthorn]

As a famous phrase goes, "a rolling loan gains no loss".

[@jeffrelf]

-- China & America are like Russia & Japan, 1989. -- 10 year T-Note yields will drop below zero. -- Inflation & Growth will slow ( due to the lack of babies ). -- Crime will skyrocket as bankrupt judges/people fail.

[@royarnehansen]

This has been the observation from the people who actually bother to look into details instead of listening to the stories told by the CCP. In fact, there are many similarities between the USSR and China. At its peak, the GDP of the USSR was 1/3 of the US but now the same area is at 1/16 of the US. It's the classical example of building a giant construction on clay ground. What will happen if the western consumers finally get tired of the aggressive CCP and stop buying Chinese products for political or human right reasons? How long will it take before it all crumbles?

[@jeffrelf]

​@@royarnehansen: > At its peak, the GDP of the USSR was 1/3 of the US > but, now, the same area is at 1/16 of the US. My point exactly. Communism - always - fails because no one cares about stuff they don't own. Only idiots vote. At first, everyone wants "it" ( free stuff ). Decades Later, they realize that life doesn't work that way. Free Rent. Free Money. Free Drugs. Get Out of Jail Free. What could go wrong ?! Feed the pigeons & you just get more of them. Reward Virtue. Punish Vice.

[@royarnehansen]

@@jeffrelf I guess you can discuss if capitalism is the best system for the distribution of services and wealth, but it for sure is the best to create a surplus that we can live on. The problem when you have a "constructed" economy it is built without a solid fundament that makes it bounce back fast. The whole economy is like a Ponzi sceme.

[@DawnyAussie]

Other commenters have pointed out- it was a real problem with the spillover into Australia with Chinese investors buying namely land (usually in the form of farms to assist the supply chain back to the mainland) as well as houses. There are so many ghost properties that were bought 5 or more years ago (obviously bought as long-term investments by overseas buyers) that it's ridiculous. The Australian government started to make steps towards limiting the amount foreigners could invest in real estate, but quite frankly, the damage has been done. The greed of Australia looking for a quick jab in the arm from the property market has crippled us in the long run.

[@Fr.VeniceLAI]

Finally, your videocast has become so relevant today, Sept-2021, with Evergrande's huge USD300 BILLIONS liabilities and financial woes, gathering International media & investors' attention.

[@hepthegreat4005]

Opp looks like another is starting to fall today.

[@Dwightstjohn-fo8ki]

@@hepthegreat4005 yah, sure. Even a stopped clock is correct twice a day. this was six months ago. this crap has been known in finance for a decade or more.

[@jmitterii2]

@@Dwightstjohn-fo8ki And it's now falling apart. The biggest collapse come not out of nowhere, but the scratching of them head, how the fuck did it last for so long in the first place? Then you find out the cockroaches that nobody really knew about that allowed the infection to fester to the point of death. If only people listened and examined. Instead of went along with it to the point that so many people are harmed by the vicious stupidity.

[@alanjenkins1508]

Paying somebody to dig a hole and another to fill it is not growth. It is though a distraction, which I assume is the whole purpose.

[@Kncperseus]

It's actually worse. Look at the movie Justice League - they fired the first director and brought in another to work mid-way - resulting in a product that makes you vomit.

[@shachar2]

If the result is that other people are willing to pay more. That is the definition of economic growth

[@Kncperseus]

@@shachar2 lmao, learned that in a Chinese University, did you?

[@michaell.2744]

Seriously thank you serpentza you are brave for what you do and you have truly inspired me and you give me hope we can inform the world. I can't thank you enough. You are a cool funny , smart, and over all awesome dude 😎 you and laowhy both! Love from san Diego

[@meganlukes6679]

I’ve only heard that as a joking illustration of economic forces, no one was ever meant to actually do it.

[@cstephen98]

So, like art, it's an investment vehicle/racket for the rich. They're trying to do that here with Chinese investors buying condos in Toronto/Vancouver that they then don't live in but the cities/provinces are cracking down on that and starting to more heavily tax unoccupied units so they're freed up for the people actually needing to find a place to live.

[@serpentza]

That is the best way to deal with it, but they'll find a way around it, like pay someone to visit the house once a week to make it look lived in

[@Alyanorno10785]

@@serpentza This is correct, and the predominant vehicle by which these hoops are jumped in Vancouver. I’ve known a few individuals to have a side job where they do this, staying a day or two per week at different properties to check the box and avoid taxes. This money, and the gross appreciation of residential real estate assets, has made Canada rich... but it is a runaway train. Words cannot fully describe how irresponsible it is towards present and future generations.

[@COBARHORSE1]

@@serpentza I would take that job... And then sub let the place, and keep the money.

[@paulgooderham]

Some young people I know who live downtown confirm there are a lot of empty units. There is a building near where I work that has no lights on at night and no personal items visible. It must be completely empty. I thought it might be a missile silo or an underground bunker for an intelligence agency. Perhaps there is a simpler explanation. In Europe a city worker makes a surprise visit a few weeks after you move in to ensure it is your real home. They come in and check your fridge and closets to make sure.

[@jantschierschky3461]

Same here in Australia and other places. Try to buy a house in Sydney or Melbourne.

[@jonbarad1]

Seems like a similar trend in many cities. Whole world is in a bubble

[@Utoko]

All assets are in a "bubble" but it is driven by the expansion of cheap credit and fiat money (Asset inflation). Your money is just worth less now.

[@stefanyuwono1909]

That's why crypto currencies are rising up

[@pdwag198]

"There is no religion other than greed in the Middle Kingdom." This sounds so true and poetic, it's like a proverb.

[@pdwag198]

@C M When you Google translate the characters for China one by one you get something like "middle, kingdom" or "middle, country".

[@derekeano]

It’s also incredibly shortsighted and rude. I have personally met follows of Christ in China.

[@sukarmatakamu]

@@derekeano You're missing the point of the quote.

[@donazs739]

Still sounds like an ad hominem..

[@Jupiter__001_]

@@derekeano The point is that China is a very Materialist society, and as such is focused only on self-enrichment and wealth-acquisition. Christianity grows rapidly in China as a result of the spiritual emptiness of Materialism and of the moral-relativism that has developed there due to the numerous folk-religions and philosophies there.

[@MickyELee]

You are trying to give a rational explanation of madness. Well done. Impossible task.

[@jt4369]

Actually, he does a pretty good job of it. The Chinese (I’m ethnically Chinese) are OBSESSED with real property. It’s cultural and bone deep. The price rises? They bid more. The price falls? They buy another. This is demand on steroids. You will never understand the grinding mindset of the last generation of Chinese born during the Cultural Revolution and before and even up to the 80s. Real property of bust. It’s only the generation after who may care less. They will be the beneficiaries of lower costs of real estate when the previous generation passes and homes begin to flood the market. But even that might not happen. The Chinese collect these things like Trading cards. It’s gotten so bad that quasi-political interest groups’ interests are vested in keeping the market sky high. Same thing here in America. You were born in the middle class? Get ready to die poor.

[@am-md1wl]

Sadly this is having an effect in Australia as well. Large developments with completed empty apartments. Meanwhile rents (pre Covid) were skyrocketing for older poor condition apartments while brand new apartments sit there empty. Land values are now unaffordable anywhere in a capital city as they are not bought to be a family home but rather a development opportunity.

[@freedomlife3623]

Doesn’t Australia have empty housing tax?

[@lamentate07]

@@freedomlife3623 No, but it's about to be introduced in many states.

[@WuhanMan2013]

Interesting video. When I moved to Wuhan many years ago, I noticed many empty apartment buildings (i.e. no lights on ever). When I left 5 years later the same buildings were always black at night. I worked for a large building materials company and when we were defining our strategy for the future, we found out that the average lifespan of a Chinese building was only 20 years, then they would be torn down. A colleague of mine bought an apartment and I aske him what happens in X years when the building is torn down, as it can't last forever. He told me that the government would take care of him and his family and the government would build another building. I also read a few times that there are enough empty apartments to house the entire population of Germany and France. I have been waiting for a housing crash in China since 2005, but it hasn't happened yet and they seem to continue on. On a final note, a Swiss friend of mine called these apartment buildings "people silos". Your videos are great and very insightful.

[@stefanyuwono1909]

Why hasn't it crashed though? That's just a fact of life. Every bubble burst, prolonging it only makes is more painful when the crash happens. In my mind, The only way is by cooking the books. The gov controlled banks probably won't let any of the loans go bankrupt, no matter how bad it is. And since they control everything money related, as long as people can make their purchases to live, there probably won't be any bank run. The only way they can get any relief is if they sold their bad loans to foreign investment. In other words, they need access to foreign funds. Fool the foreigners into carrying their bad debt. It's a house of illusions. Sooner or later, people will realize that even the trusty housing market is fake. If the compensation for losing investment value is decided by the gov, why would you continue investing after getting burned multiple time. I'm guessing this is why the gov is cracking down on bitcoin. They saw that the people are starting to avoid the property market, and start investing in bitcoin and other crypto currencies instead. The 1% are buying up properties overseas, while the rest of them are buying up bitcoin. That's a huge problem, if their economy is driven by the property market. If nobody is buying new properties, their economy will cool down significantly.

[@BereichAllgemein]

@@stefanyuwono1909 The solution is a centralized didital currancy. China is already testing this in some regions. ECB (European Central Bank) has also devised a digital Euro. When the next big crash happens they're ready to pull this out. And this is very possible due to Covid and the consequences of the Lockdowns. But there is one big downfall with this: This gives the gov. absolute control over you. They can simply deactivate all your digital money and your digital-money-account, restict the region you can spent your money, prevent you from traveling, set an expiration date on your money - so you are unable to save it.... Everything is possible. I am shure that the FED has kind a Digital Dollar ready for such a scenario as well. Bitcoin will be skyrocketing if China bans it and launch it's own centralized digital currency. But what if the EU and USA would ban BTC too and launch their digital currencies?

[@grizzlygrizzle]

Interesting concept. Generate economic activity by producing nothing of real value. Seems a bit house-of-cards-y to me.

[@aoeu256]

@@grizzlygrizzle US military spending follows a similar principle though...

[@Infamous41]

@@stefanyuwono1909 because if it did the CCP won't allow negative news to leak it'll just patch it until it recovers

[@TPM188]

He forgot to mention “no apartment, no wife “

[@justvideos3216]

And he has forgotten: No home ownership, no social benefits in a district where you were not born.

[@manaflask8826]

These Chinese housing videos are fascinating. The pure insanity just boggles the mind.

[@LucasFernandez-fk8se]

Is it that different from what is happening in the US now? The US is clearly in a housing bubble 2.0, and without a Republican president or good economy anymore we are certain to pop soon. Our pop will be less painful then Chinas but still. I’m rlly expecting another 2008 soon

[@anthonyreed480]

@@LucasFernandez-fk8se Bra, have you ever heard of the Sydney housing market lol? You get a 1960's shack in a shit neighbourhood for > $1M.

[@gomiladroogies5951]

These are the same prices in LA. The prices are actually even higher in Singapore and Munich. This video is just made by a propagandist, he earns good money making these nonsensical videos.

[@freedomlife3623]

@@LucasFernandez-fk8se isn’t the first housing bubble happened under a Republican President’s watch? Fact, last 3 depressions are under Republican Presidents watch. You need to educate yourself on history bit more before making claims.

[@anthonyreed480]

@@gomiladroogies5951 This channel is about a Westerner's view of China, by a guy who's lived and worked there, speaks the language, and has married into a Chinese family. This isn't a channel about Singapore lol. However, yes - OBVIOUSLY - China isn't the only place in the world with a real estate bubble, but it is the only place where public funds build mini cities that crumble within months and were never occupied. The fact that you call any criticism of China "propaganda" is, in itself, pro-CCP propaganda. Prove me wrong by listing the 3 worst things about the Chinese government lol.

[@samalass466]

The fact that they're built like they could fall apart at any time sounds dangerous. Imagine that you're just sitting at home and suddenly the floor cracks and you fall 13 floors to your death.

[@MegaBanne]

none plans to buy them anyway.

[@jangelbrich7056]

I seen a documentary about high rises in the UK from the 1970s. They had similar issues with corrupt construction companies who tried to make any kind of profit at the cost of safety. And like in China, some buildings crashed. A worker who was interviewed said he would not live in those houses, because he knew all too well how those have been built.

[@dannydaw59]

It happened in the Soviet Union in the 70's too. Same concept. The contractor building the place holds back materials to do more construction projects. Quality suffers. Building falls apart like a decade later.

[@samalass466]

@@MegaBanne Won't prevent any potential deaths.

[@MegaBanne]

@@samalass466 None is going to live in them.

[@Baamthe25th]

I don't know that much about China, but I know a bit about economics. While this generates "economic growth" on paper, if you think about it, it's not real growth. If the appartment aren't used and don't last, meaning they don't actually add value to the economy in real terms. It's like if you paid a guy to dig a hole, and another to fill it up again with the excavated dirt. You created two "jobs", but no real work gets done. This basically looks like an enormous redistribution scam, sponsored by the CCP to "boost" their growth statistics.

[@megsley]

quantity GDP over quality GDP

[@kushalvora7682]

This title didn't age well.

[@polarbear6597]

Not only in mainland china , here in Indonesia , many rich indonesian born chinese people are doing business in properties , and the most funny thing is they love to build crappy imitation of greek or southern european architecture

[@polarbear6597]

Please take note that i'm not trying to perpetuating discrimination toward ethnic chinese in indonesia since they used to be discriminated like white people in south africa

[@wisdomleader85]

You don't need to apologize if you're telling it as it is. Nobody is perfect. We all need criticisms in one way or another.

[@felixsubakti6907]

@@polarbear6597 nah you're right the design is atrocious

[@polarbear6597]

@@wisdomleader85 thanks mate, i'm indonesian born chinese as well, so i assume that i have more privillege to criticize my own kinds since many of my non chinese friends here in indonesia are too afraid to say anything bad about china or even CCP because of past discrimination and yes ! Political correctness not only exist in the west , its also happening here in Indonesia.

[@dannydaw59]

@@polarbear6597 Do you mean discriminated like BLACK people in South Africa?

[@SoundsOfTheWild3]

When I was there China's housing market always seemed like one big Ponzi scam to me.

[@gregmoffatt9524]

lol I love it roll the dice Macou style

[@planets9102]

I mean yeah, it really looks like the US suburbs except with apartments.

[@christianwhittall5889]

Tbf most countries have this issue, but like everything in China, it’s much more extreme

[@Default78334]

Several years ago I was in Wuhan and paid a visit to the provincial art museum and there were already big cracks on the interior walls of the building which was only a few years old at that point.

[@editorrbr2107]

It reminds me of 1984, where Goldstein‘s book outlines that the purpose of the war economy is to consume all of the output of the economy and keep persons outside of the party working, but barely above scarcity. That wasn’t supposed to be an instruction manual, guys.

[@serpentza]

This will eventually end very badly, it's really just greed on steroids and the people hurt the most are the young graduates entering the workplace, how will they ever survive? Thank you for watching my videos, your support is incredibly important so that we can continue this very important conversation! Support Sasha and I on Patreon: www.patreon.com/serpentza Bitcoin - bc1qxfjp2t6x5dpslv59u0jl89m6k643hcn8h2jsvp Ethereum - 0x6Da150a2A8529110017Ed4db68B3dF0084900280

[@osamabinladen824]

Not really.

[@Dylan4nderson]

Bless you serpentza. Keep the pressure on them.

[@cmsacademy1673]

Love your videos. You should do a series on the uighurs

[@JarretGibson]

Serpentza I agree that they are definitely over-building to capitalize on the hot markets. But I may be missing something in your analysis here. It sounds like you're saying they tear down old skyscrapers to build new ones and "start the process all over again". Is that really how it would work, though? If they knock an old, dilapidated 250-unit apartment building that was sold out in order to build a new 250 unit building, how would they make money? The units are already spoken for, right?

[@mrmagoo-i2l]

@@JarretGibson Mortgaged out, then people default. The ‘banks’ own them then. Just a guess.

[@LEV1ATHYN]

What history has taught us: whenever it looks like the rules of the universe don't apply and an exception is at hand, brace yourself for a most spectacular failure.

[@ahoosifoou4211]

Looks like a war is coming. Or something disastrous.

[@hughmungus2760]

the entire global economy is inflated with easy money and overdue for a catastrophic reset. Don't think this is going to be confined to china.

[@bargainbassist]

Heavy-handed human and/or government intervention to that degree in the economy and finance cannot help but end in catastrophic mega-disaster.

[@sinisterminister9920]

If I were you guys, & I do agree 1000% with every reply so far on this comment. What I would do is start buying crypto. Dont laugh or turn your nose up at the crypto industry. The WHOLE point of it is too strip the centralization away from economics and commerce. I’ve made a lot of money from crypto. BUT that’s not what this is about. We all know the bubble will burst ACROSS the globe. Everything the government in each country has power over and or presides over will collapse. Wallsreet stocks are doomed. The next 10 years or less, the USD will be inflated into extinction. And NOBODY will have a dime to give or even accept. Point being: you need (we) need to be prepared. So when economies collapse. You will have the future in your pocket already. There will come a time with Cryptocurrency where it will be too exclusive to buy, or come-up on and YOU will be fucked royally. When everyone is poor and suffering because of lack of money or food or commodities. I will be ready and be consider rich, due to the crypto I am hoarding. It’s not too late. But if you wait another year or 2. You might regret it

[@JAN0L]

This is what happens when you let housing become a financial investment rather than a consumable good. I usually support a rather hands off approach to the market, but here I think at the very least there should be a higher property tax when you own multiple apartments and they stay empty for a prolonged time to disincentivise this. Though I get why people would fall into this bubble given everything seems like a bubble right now and there seems to be no safe way to keep your savings, especially with all the deficit spending worldwide and likely future inflation.

[@Firehawk376]

Oh, this is a ticking time bomb. I knew China's constant economic growth was astroturfed, but this is... this is not a good idea. Eventually, sooner or later, someone with enough clout will realize that this just isn't a good idea and act on that realization, and then the whole thing will come crashing down.

[@jrbb1837]

Beijing and Shanghai have already set restrictions where the married couple can buy at most 2 apartments and the second must be paid in full. If you are single you can only buy 1. The property price has been rising much slower right now but as Chinese cities expand at a crazy rate there are still many people trying to buy a house in the cities.

[@TommyT777]

I’m pretty sure their housing market is more like a cookie than a bubble; it’s going to crumble rather than pop.

[@urduib]

Lool :) good one matey

[@domestique3954]

so-called tofu buildings.....🤣💦

[@dunyazade]

"There is no religion other than greed in the middle kingdom." --> SAD :/

[@serpentza]

Sad but true

[@slickrick2420]

It's capitalism unchecked

[@drerbrerard130]

And the irony is when they come to the US they expect even worse, since we historically haven't shared their collectivist values.

[@thebranch3874]

Its the actuality

[@alyoya]

@@serpentza You are right on that. Sadly not too many folks either from China or outside of China understand to that level. If you look deeper into this as why it is like that in China today, the reasons behind this will make you heart broken.

[@jyotpurohit9435]

Anyone here after evergrande collapse?

[@alicestanley177]

What you said is so true. I have relatives in Guangzhou and I had an inheritance of two apartment units. I sold them and learned that people used other people's names to own these apartments because the government only allows city citizens to own two property. I am so amazed the high price of the apartment compared to their income. The people I know told me that if without their family and relatives' help, they could never afford any unit. Many of them do not even know that they do not really own the place. It is a 70 year lease on the building. Some of my relatives sold the property in China and became instant millionaire here in U.S. However, to get the money out is another story. I am still trying to get the money out. It has been 10 years.

[@jamessun7721]

Apparently Chinese government are not smart enough to prevent real estate malpractice, just like NYC real estate.

[@ridick4nothing]

Try to whitewash it through gambling in Macau maybe?

[@ricefarmer8553]

@@ridick4nothing Not as effective as it used to be.

[@MeiinUK]

You can blame these people for twisting these rules. To borrow money from your relatives is fine, only if they have the money, and they should indeed formalise this as well. Or to have it in writing, as that they are a guarantor or something like that as well. And in black and white, how it is to be paid off. Tying a person to a city, is trying to build up that city. Just like in HK. Once it is full. There should be nobody else, allowed to move into that city or area. If you lose a job, you are supposed to find the same job, in your own hometowns !!! You cannot, or is not allowed to move to another city, so easily !! I have only ever lived in HK and in the UK. And I was born in the UK. It took my family, at least a good 1-2 generation to find the money, to build our own house. And it took my family, at least a good.... generation to keep and to sustain the economy as well. My mother was not educated. She was not even allowed to go to school back then. Her children had standard education and it was free, up to 16. And then for me, I was lucky that I got a free uni education in the UK. But I worked hard. I pay and I rent, and I pay back, and save save save. People save and put it back into the banks. And then banks lend it back to the business world. This is how it is supposed to go. Between what is happening in China, and then in the US. The combined efforts of you guys are definitely screwing up the rest of the world !!!!! Please stop !!! A lot of locals even here are like you guys.. They just now, suddenly, realised that there is a demand for houses... They now, take things back into control and do up the old houses. Cos they see others also doing the same as well. This kind of "fighting effect" is often the way, isn't it ??? Cos people do not want to miss out. But then, back in the days.... when the local government takes care of many areas as well.... Just...

[@jangelbrich7056]

You just explained the gears how a waste-by-design economy works. The utter absurdity.

[@stefanc4520]

That's called Capitalism

[@jamessun7721]

Then you have not read about Citicorp Center yet. They lied and hide the truth.

[@andersonlucas1951]

There's a name for it "programmed obsolescence", capitalism at its prime for wasting resources for profit.

[@GustavoRivasMendez]

@@stefanc4520 Does that mean China is more capitalist than the rest of the world? Since this is a problem that is especially acute in China..

[@GameFuMaster]

@@andersonlucas1951 Not really. Programmed Obsolescence only works when your competitors are also in on it (see the lightbulb conspiracy). Or if people are dumb enough to continually buy your products (see iPhone users). But this is why we need government oversight, to prevent monopolies/cartels and to prevent companies from purposefully negatively interfering with your bought products (see older iPhones being purposefully slowed)

[@polarbear6597]

Why when everytime china build new artificial cities annd they upload it on youtube i always find comment that degrading how "poor" is infrastructure in US, but honestly as asian my self i prefer to live peacefully in US with large garden and limited neighbors rather than in concrete jungle that claimed to enviromental friendly by just adding some artificial greenery for your building facade.

[@peterfireflylund]

The infrastructure in the US isn't poor at all. Sure, the EU has better roads but the ones in the US really aren't bad. There are trains where they make sense: long-distance cargo trains, passenger trains where there is a reasonable population density, metros in (some) cities. There are no silly railways to the top of all the mountains or trains where it makes more sense to fly. There are no absurd bridge building and tunneling going on to bring railways to steep mountains where a serpentine road for cars would make so much more sense.

[@coolbro546]

Yesss

[@SUpersaiyajinjerkbag]

If you really live in the USA, you would know that someone from the USA doesn't refer to a backyard as a garden (unless you are not a native English speaker...), and people do not casually own houses in the middle of Seattle. Is there such thing as a "reverse wumao"? Because I am suspecting this channel has a few.

[@bluehotdog2610]

@@SUpersaiyajinjerkbag Wrong and wrong

[@larsradtke4097]

@@SUpersaiyajinjerkbag in BE Your backyard is a garden.

[@cheesylorry]

Hello Serpentza, I would love to hear your thoughts about the Evergrande debacle… feeds in quite nicely to the current narrative..

[@CRAZYCR1T1C]

What Serpentza should realize is that its not the value of the properties going up. It is the value of the money going down.

[@henry-bn2se]

interesting so it is the only way to save money without losing money due to inflation right?, So if you put your money on the bank with like 0% interest than you actually end up losing money due to inflation. I have never been to china so correct me if I am wrong

[@hughmungus2760]

Can't wait to hear his laymans attempt to understand monetary theory.

[@m8596hk]

@@henry-bn2se If buyers have to borrow money from bank, the mortgage rate is pretty high in China. If you have money ready in bank, then buying an apartment may be a good strategy.

[@henry-bn2se]

@@m8596hk OK so as an investment for rich people. Like intrest rates are actually pritty High in China so all Things considered if you put the money on the bank you still make money Just Googles IT XD even though inflation. So I was mistaken. Still dont understand the money is worth less Part of the comment as sure interest is low but inflation isnt abnormally high so putting Money in the bank still somehow Makes sense

[@Brad_A]

Do you know how to spot a bubble? When the rent is a lot cheaper than the mortgage payment of the house

[@resultspaid7250]

That definitely describes China.

[@kevinho8637]

Cases here are more complicated in China mega cities. If u rent a house, it will be almost impossiblefor your children to enter the high quality, reasonably priced public-owned schools, while private schools are either amazingly expensive or of poor quality. U might know how crazy the East Asian guys care about their children education. Surely this also contributes a lot to the bubble, more debt, bigger leverage..

[@akastenas]

Not always, as the demand might be growing disproportionately among different types of property. If rent is a lot cheaper it simply means that RE is a bad speculative investment, but it does keep it's utilitarian value still. But in general you quite right in most of the cases.

[@denniswhite166]

My Mother used to call tall apartment buildings "People Filing Cabinets".

[@josephberrie9550]

I call them places to store workers between shifts

[@jossdionne9810]

Exactly my filing!!

[@tonyfriendly4409]

She's not wrong

[@Ni7suj_]

Privileged people love to say that. If you live in Sydney, “people filing cabinets” are normal here too.

[@denniswhite166]

@@Ni7suj_ My mother was far from "privileged" she grew up in the country during the Great Depression.

[@bongothecat3233]

I can't wait to see the bubble bursts, I've made it my life goal to survive until the day I see this happening with my own eyes

[@jrbb1837]

Well. Look at Hong Kong’s housing price. That’s where Shenzhen will end up. They still have a long way to go so not sure if you’ll live to see it

[@namenandern5531]

@Ernest Khalimov well now it is

[@ggoddkkiller1342]

We have an olive garden which is owned by my family since five generations and it is really peaceful feeling sitting under trees that my grand grand father planted, it makes you understand we aren't meant to last but our heritage is!! I think this is the problem with Chinese society as they don't really own anything rather only leasing so it is never enough...

[@williamallison9170]

This is like the best vibes I’ve ever had from a comment I couldn’t agree more, plant a tree knowing your children will sit in its shade

[@rikilshah]

Decades ago, CCP systematically destroyed identity and heritage of very rich Chinese Culture and turned them into mindless zombie. Just read about History of CCP during 1940-50s. It's just absurd.

[@tristan6509]

Well it used to be that way and is still the case in the countryside, but rapid industrialization just destroyed china

[@ShanghaiGoat]

What's so scary is that absolutely everything Winson just said is true

[@KA-vs7nl]

What's scarier is the people who defend it

[@lazyhusband]

What’s scariest is that Winnie The Pooh is banned.

[@LeisRealTalk]

And many people in China thought this is NORMAL!

[@OddZodd]

@@LeisRealTalk Well they grew up around it so,

[@MeiinUK]

@@LeisRealTalk @ LOL.... No way !!!..... OMG.... Whatever happened to getting a generation of educated individuals to make it work so ?!!?!

[@bbustin1290]

Now I know why when Chinese buy property here in the USA. They maintain it badly and treatment like an apartment. and have little pride of ownership. when buying property with a lot of Chinese ownership... you might want to reconsider ... and it’s an economic decision ultimately

[@eyeborg3148]

The funny part is that it’s basically just foreign Chinese keeping the real estate market alive in places like NYC right now. All the rich people in NYC are leaving for places like Florida since everywhere is closed due to pandemic and businesses are leaving NY. (E.g. Goldman Sachs is considering moving its headquarters to Florida, a lot of execs have moved out already). You’d expect the market to totally collapse but foreign Chinese investors ar buying up the apartments, probably never planning to live in them lol

[@bbustin1290]

@@Brad_A LOL unless your living next to homeowner who pays 1 percent and doesn’t care if they take care of their property. then your in the lucky 1 percent who lives next to them. Understand it’s not all. Not saying that

[@Jake-dh9qk]

Chinese don't really care about land ownership and pride because their culture never really see the significance of land. They only see what they can get out of it. Land is just an imaginary border drawn by people if you think about it

[@jamessun7721]

Japanese had the money back in the 80s, and America did not like that. We all know what happened then.

[@Re-InCarNation]

Shen Zhen: "Most expensive real estate in China." Hong Kong: Allow us to introduce ourselves.

[@someguy1243]

I bought an apartment here in Nanjing in 2012 for 1.3 million and sold it in 2019 for 4.3 million.

[@kushal4956]

damn

[@bingwang4569]

sold it-that's the key!

[@SkandalRadar]

4.3 million of what ... Renminbi, Dollar, Euro, Zimbabwean Dollar, Marbles ..?

[@kushal4956]

@@SkandalRadar renminbi ig

[@Klassenfeind]

Definitely RMB

[@quantumeseboy]

Eerily similar to situation in South Korea, with some key differences. The only real difference being that people earn higher wages in SK and land disputes don't escalate to that level of violence.

[@fedupwithbs1782]

There have been deaths and violence over displacement of people when they build new housing Not often but it happens

[@j.benjamin3782]

The staying power of the Chinese real estate market - and the Chinese economy in general - despite the constant predictions of doom is certainly noteworthy, as its structural weaknesses are quite real. The only rational explanation seems to be that, so long as the Chinese economy is sucking up enormous amounts of foreign earnings, it will remain viable. However, once the outside world disconnects sufficiently from China - a process which is now underway and irreversible - the outside funding that has supported their internal speculation will dry up. In the wake of that disappearance of monetary stimulant, we'll likely see a spectacular collapse in virtually every sector in China.

[@philipbrown1433]

Exactly! US baby boomers in for huge unpleasant surprise when their 401k's disappear in China default. Wall Street and hedge fund managers are selling us out. Its frustrating to see it coming but not sure how to avoid the impact.

[@IAmBeingSilenced]

They won't allow it to "fail". Whatever it takes . . .

[@UmamiPapi]

So it's a pyramid scheme. The rent isn't what they get in return and they don't even own the property. Whoever is left holding it when the apartment crumbles, the 70 lease is up, or the market crashes is ruined financially.

[@PrivateEyeYiYi]

The impact of feng shui (sp) became apparent when I saw another video about the tall building in the news because it shakes uncontrollably. Well, someone placed a mirror on the side of the structure, which was supposed to reflect bad spirits, according to feng shui. It’s amazing to what extent Chinese behavior is controlled by superstition.

[@abletmuhtar8979]

"There is no religion other than greed in the middle kingdom " hit the point.

[@Aasiakhaliif]

That's really crazy so no one actually owns lands you just own an apartment for 70 years and chances for its demolitions is like last night 😳😳😳😳plus you have to take out ridiculous loans just to buy an apartment 😵😵😵😵😵My God!

[@rickytleung]

It's even crazier when you think about it. That 70 year ownership of that concrete box can end at any minute when the local government arbitrarily decides they need more money and just goes in, kicks out the owners or sends in thugs to beat and hospitalize people and starts demolishing buildings.

[@XenosImplyer]

@@rickytleung Yep, it happens way too often in rural areas where there is little to no oversight and all it takes to depopulate half a village is a bribe to a local official.

[@sujith3914]

@@XenosImplyer I have been watching reports of this happening in Beijing for the past few months. They were apparently cutting off electricity and gas to forcefully evict them even though they only completed around half of their lease term. They were doing this to old people too and it was in winter where people evicted like that were suffering on streets in the cold, there were videos of this.

[@user-he3dt7hr4u]

People don't need to pay any property tax even when the apartment price streak up 10 folds more, so pros and cons, people make their choices

[@m.j.g3016]

Hail Chairman Mao!

[@LarryfromPH]

'There is no religion other than greed. ' Unfortunately, they are already doing that even beyond their territories.

[@leowood2000]

Congratulation! You discovered the secret of the China's ecocomic miracle.

[@Infamous41]

Of course!! The CCP won't allow negative news to leak it is a miracle 😆

[@erisi236]

I could never live in a home that wasn't going to outlast me

[@vellapb1812]

Yeah you are right because your children will be living after you, it would be better to live far from such buildings than near it.

[@LucasFernandez-fk8se]

It’s most homes in America imo. Like how many homes do u expect to last 80-100+ years? We either tear down old homes or they fall apart if they become abandoned for ten years

[@wichitawwojak3786]

@@LucasFernandez-fk8se i've lived in 150 year old appartments more than once

[@TrackGeeks]

Yep. My wife has been sitting on her apartment in Foshan China thinking its a good investment. I've been encouraging her to sell it but she won't even consider it. I was horrified how much degradation it has suffered after only 20 years when I saw it in person.

[@MeiinUK]

Cos China has a monsoon season... and it is good for rice, and not necessarily a concrete building. Good buildings, from the past dynasties.. were built from porcelains. Look at the last flooding.. Which building stayed upright ?

[@jamessun7721]

Yeah, US real estate sellers use cheap contractors too. House have all kinds of issues. Sell it for the money. Get a better quality house, security is more important than size, when you have limited budget

[@maolo76]

So you think a apt building will still be in mint condition after 20yrs..gtfoh.

[@Andytlp]

@@maolo76 it is here in europe. Btw if chinese gov owns the land and real estate is leased do they technically have to tear down and rebuild if the housing becomes too unsafe to live in? Then give free housing to the owners of the previous homes. That seems like a dumb business model. No way those homes last 70 years.

[@jamessun7721]

@@chrisblue4652 good. In China it depends on the local government, some location is so far behind on standards and regulations etc and they would allow shady acts of big companies. It will take a few years, if not more, for them to catch up to developed countries.

[@adrianbeckmann3778]

Just disgusting, forcing people off their land. Some probably have had that land for generations.

[@pgprentice]

The Chinese built a ton of these shitty apartment blocks in Angola. Locals can't afford to buy them so most are standing empty.

[@ChinaUncleMikey]

the biggest slavery in human history.

[@hughmungus2760]

this applies outside of china too you know.

[@TrangleC]

Maybe I misunderstood you, but I think you said "blue collar" when you actually meant "white collar" at the beginning of the video. You were talking about office workers making 1000 Dollars a month, right? Those would be white collar workers. Blue collar workers are handymen, physical laborers and so on.

[@serpentza]

Yeah I mixed them up

[@TrangleC]

@@serpentza An easy to make mistake. I'm not a native American either and also had to get used to stuff like that. Very good and informative video, by the way.

[@andrewmoir]

@@TrangleC ? English is his first language. If anything Anglo SAfricans have a better grasp of the English language than the Yanks.

[@TrangleC]

@@andrewmoir That doesn't change that certain terms and colloquialisms are national and aren't the same in every English speaking country.

[@georgeinjapan6583]

@@TrangleC Very good point.

[@dean8147]

Interesting. I met a Chinese Postgrad student a few years back. We had a short thing going on. During that time, she told me a few interesting things about her (shes incredibly rich and lives out of her dad's pocket). 1) her family were making money through the property market as you explained right here. 2) Although shes roughly 26 right about now, she is actually a second child who was born during the 1 child policy. Her grandfather is a higher up for the government and managed to get all her documents sorted out so that the troubles of the second child would go unnoticed. Fook there was a 3rd but icant remember now. Ill edit the comment when I recall lol.

[@Hermeneus778]

Here to ask about the 3rd thing if you remembered

[@kaiserchief9319]

Winston, buying a house is expensive because they want people to keep renting. It's part of the sustainable circular economy. They're trying to usher in the same thing in Europe. "in 2030, you'll own nothing and you'll be happy" --- World Economic Forum.

[@ChrisDeger]

They have already done this in canada. An entire generation of Canadians will never know what it's like to own a home

[@jamessun7721]

That is a problem of real state industry. They try to make you blaming other people for it and keep ripping you off. So much land are under their control, not your control.

[@TheHippyhopp]

This sounds a lot like whats going on in the capital of Norway, except for the poor house building

[@AnemosFPV]

Norway has a insane housing bubble. Students are buying and the crazy things is that they buy together as they can’t afford it 😂 stupid people....I warned them, they didn’t listen. It will be great time to buy everything when it crashes. Can’t wait

[@krithikkumar959]

Whole world is living in a bubble thinking China has housing bubble.

[@bo_d_n]

This video aged well ..

[@SylwesterKogowski]

One thing everyone needs to learn about all crises is that no crises appear if people know about them. The only crises that appear are those that are not expected. Unless you live in Zimbabwe or Venezuela, but these are exceptions.

[@DeLorean4]

In my part of Canada, housing prices kept shooting wayyy up even during Covid and with loads of factory layoffs. I kept my job, but my salary doesn't increase anywhere near as much as housing does. The goal just keeps becoming more and more unattainable, and the housing bubble never seems to burst.

[@Marc-tn4zj]

Are we all just going to ignore the dude literally living on the edge at 5:58? That's a small dude with giant balls of steel.

[@markanderson3870]

Unsustainable. When it crashes it'll be worse than the crash of 2008. A house of cards.

[@MadebyKourmoulis]

A 900 sq ft livingroom is monstrous my man. But I get your point.

[@tonywatson5704]

The punchline to this story is demographics. Property only retains/gains value if there is underlying demand. China’s population is rapidly aging and will start shrinking this decade. Case in point: Japan.

[@AntonioCostaRealEstate]

Well pointed. You hit in the screws.

[@hughmungus2760]

thats where gentrification comes in.

[@midge_gender_solek3314]

The suspicious fires destroying property on expensive land is not only a Chinese story

[@user-sk7tm3ps1m]

Evergrande failure proves ur point Winston!

[@propheteyebert7063]

I bet the Huawei Executive "detained" in Canada in her mansions, is buying more property here.

[@xintian2299]

do you know what kind of house she has in China?

[@jamessun7721]

I bet you want detention. Big brother can detain anyone getting in their way of making money with any excuse. You don’t get to complain. Watch out

[@davidhunternyc1]

My favorite type of home in China is the traditional siheyuan (a central courtyard surrounded by four structures). I've been in a few myself and they are breathtaking. Some are a thousand years old and what a great way for an intergenerational family to live with each other. Why would anyone buy these awful concrete blocks when they could buy a historical masterpiece. Siheyuans are disappearing every day, making room for modern development. I don't know how these historic homes can be preserved in the face of an authoritarian government who doesn't value them.

[@2hotflavored666]

Are they cheap? I would assume these are getting more and more expensive.

[@davidhunternyc1]

@@2hotflavored666 I remember when you could get them for nothing. China is a huge country so I'm sure they are priced differently wherever you go today. About 10 years ago siheyuans were becoming more and more expensive, especially around arts districts and urban centers like Beijing. I remember one selling for $1million but it was a masterpiece. Today, most siheyuans are subdivided and house different tenants but I'm sure there are historically preserved single family homes still around. There is no other housing like it in the world. Siheyuans are singular, built to last forever, and are one of China's national treasures. The Chinese art market has taken off too and I'm sure sophisticated collectors are swapping up these homes.

[@2hotflavored666]

@@davidhunternyc1 Interesting, thanks for the info!

[@stommx]

Are they expensive??

[@user-np3li4pl3i]

“Authoritarian government who doesn’t value them”. The siheyuan type houses are one of the most expensive houses in China. That is why barely anyone can afford them.

[@derekmcfadyen127]

I hope you do an update of this video ! 😁.... what with the evegrand thing going on

[@nodnalneyugn8753]

serpentza, your assessment of the Chinese housing bubble is correct. You’re just early with your assessment.

[@trevorpoe1506]

Currently reading “China’s Great Wall of Debt.” This video goes right along with it.

[@hughmungus2760]

the only true safe investment is guns, gold and farmable land.

[@salehmark]

The emperors new apartment

[@ayzikdig1983]

the emperor has no walls

[@suchender801]

Apartments seem to be equivalent to gold in China. I don’t think the bubble will burst as long as people think apartments are a good investment, just like gold is always valued as an investment and not just a metal. In many countries with weak institutions, people hesitate to make institutional investments and prefer gold or real estate as they are physical assets you actually possess.

[@tomnorway8673]

The moment there is a perceived alternative which gathers momentum, prices could reverse, and since they invest with the expectation of growing prices, this could likely trigger a panic and therefore a complete collapse of the market. To stop it from happening, you need the government regularly going in to prop the market up but the day they fail to do it adequately is the day it crashes. It could take some time though, but the longer it takes the worse it gets when it pops.

[@martinstent5339]

09:24 “Remember, there is no religion other than greed in the middle kingdom.” So they spend their whole lives amassing wealth and die rich. I just hope they die happy. Like a stamp collector with a giant collection of stamps, he will die happy with his accomplishment, but it was ultimately an empty life. The accumulation of personal wealth is just as pointless in the end.

[@peteryeung111]

Nice and informative video. Scary how a building can just crumbled like that 😬

[@pete-m86]

Well, that explains the Canadian housing market. The governments stupidly believed that if they increase supply, it will lower housing costs. All it did was fuel the insatiable appetite of greedy foreign investors.

[@rafimuhammadzakaria482]

This craze for buying real estate (land & Infrastructure) is a cultural thing in Southeast Asian region and not just China.

[@assasindxd3193]

I as a civil engineer will say this Residential houses are not supposed to last more than 40-50 years. Also House is always a consumable anywhere in the world BUT the land that house sits on is an investment. Normally people do not see much of a difference.

[@kamelkadri2843]

I was literally watching a video about this exact subject, as soon i was done, This video drops (3 mins)

[@csmlouis]

from Asianometry?

[@curtisalex456]

Please provide a link. Thanks

[@ryanwilliams3857]

Wendover made a good one recently

[@alessandronavone6731]

@@ryanwilliams3857 polymatter too

[@LeisRealTalk]

Very glad to see many channels expose this! Chinese people suffer so much from their government.

[@0poIE]

*I remember the documentary about a city where the governor was knocking down homes to build castle like walls around it to restore the historical aspect for tourism. After millions spent and many protests and homes destroyed he was fired and moved to another city. Lol. Reality check*

[@tothemoon1406]

Finally it bursted.

[@00Klingon]

Louis Rossmann has several videos on YT about a similar phenomenon going on in NYC right now. During a pandemic when all these properties are shut by government decree and people can't do business you'd think real-estate prices would be crashing but they aren't, they are actually rising. He theorizes a lot of it is money laundering because the property owners simply don't care that their properties sit unused and not collecting rent, in fact it would seem many of them prefer it that way.

[@Alexander-vo4gv]

Great video! It's interesting to hear a perspective on China from someone who isn't a shill.

[@dande5009]

I was loosely aware of this. I know it’s a problem in HK where mainland and local money goes into buying property only to leave it vacant before selling it a couple years down the track for huge returns. Devastating in a housing market that already suffers from major shortages. Thanks for filling in a few gaps for me @serpentza

[@gladiammgtow4092]

Problem in Australia also.

[@dande5009]

@@gladiammgtow4092 big time

[@hibberish7498]

Well it started collapsing just now

[@alouisschafer7212]

The housing market is becoming unbearable al over the world. I rather rent a cheap ass apartment for the rest of my life than pay a quarter million Euro for some run down ratshack that needs another 100K€ worth of work put into it to make it a nice House. Nah not happening. My parents townhouse was purchased for ~170.000 € and has been completely remodeled over the years. It is now worth double the original purchase price. We are sitting on a real estate goldmine here. Im willing to come by daily to take care of the house when my parents become old and dependent.