Will China’s Real Estate Crisis Hit The Global Economy?

China's real estate industry is collapsing in slow motion. Major developers like Evergrande and Country Garden remain stuck in spiraling debt problems. So-called 'ghost cities' dot the Chinese countryside. And now the International Monetary Fund just cut its global growth forecasts for 2024 and called out China's real estate crisis as a big reason why.
"It's important to recognize that there is a longer-term challenge here, and that is we essentially have too large a construction sector in China, we have too large a real estate sector because underlying demand for apartments is declining," said Frederic Neumann, HSBC chief Asia economist, in an interview with CNBC. "We have slowing urbanization. We have declining demographics."
China's overall post-pandemic economic recovery has been less than stellar. Youth unemployment is at record levels, gross domestic product forecasts have been lowered and the ongoing real estate crisis has been hitting consumer confidence and foreign investment in the country.
Beijing is now attempting to alleviate the sector's pressure with several policy moves like lowering minimum down payments and allowing for the adjustment of mortgage rates. The spillover effects on the global economy, though, could create headwinds for years to come, said Neumann."China's shrinking real estate sector over the coming years will really have a huge impact on heavy industry, on the commodity markets globally," he said. "There's going to be less steel demand. There’s going to be less cement being used - less glass, for example. That impacts within China heavy industrial areas that really produce these raw materials."
Watch the video above to learn more about where the sector goes from here.
Chapters:
00:00 - Introduction
02:28 - Housing sector weakness
06:47 - Government intervention
09:08 - Bifurcation
12:04 - What’s next?
Produced by: Christian Nunley
Edited by: Christian Nunley and Brad Howard
Supervising Producer: Jeff Morganteen
Production Support: Kate Sammer
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Will China’s Real Estate Crisis Hit The Global Economy?

[@gingerkilkus]

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.

[@TomD226]

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.

[@lowcostfresh2266]

@@TomD226 Do you mind sharing info on the adviser who assisted you?

[@TomD226]

​ @lowcostfresh2266 Actually, I'm not sure if I'm allowed to mention this, but I'd recommend looking up Laurel Dell Sroufe because she was a big deal in 2020. She manages my portfolio and serves as both my coach and my manager.

[@leojack9090]

@@TomD226 Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.

[@kortyEdna825]

If China's real estate crisis triggers a market crash or a financial crisis, it could send shockwaves through the stock markets worldwide. I’m worried about my investment of over $600K stocks. Is this a time to consider diversifying my portfolios?

[@Pamela.jess.245]

Yeah, I read that China's property market accounts for a significant portion of their GDP. If it takes a hit, it might lead to reduced consumer spending and overall economic instability. I advice you consult with a professional about your investment portfolio.

[@carssimplified2195]

That's fascinating. How can I contact your Asset-coach as my portfolio is dwindling?

[@carssimplified2195]

Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.

[@loon7181]

@@RobertCooper03 not the comment ad lmaooo, it does not look natural.

[@hersdera]

It is difficult to make exact projections for the housing market as it is still unclear how quickly or to what degree the Federal Reserve will reduce inflation and borrowing costs without having a substantial negative impact on demand from consumers for anything from houses to cars.

[@SandraDave.]

I recently sold my home in the Boca Grande area and am considering investing a lump sum into the stock market before the anticipated rebound, couple of folks have been discussing a potential May rally, speculating on which stocks may experience substantial growth during the festive season. Do you have any insight into which stocks these might be?

[@nicolasbenson009]

I wholeheartedly concur, which is why I appreciate giving an investment coach the power of decision-making. Given their specialized expertise and education, as well as the fact that each and every one of their skills is centered on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain unfavorable developments, it is practically impossible for them to underperform. I have made over 1.5 million dollars working with an investment coach for more than two years.

[@ScottKindle-bk3hx]

I’m intrigued by your experience. Could you possibly recommend a trustworthy advisor you've consulted with?

[@nicolasbenson009]

Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Margaret Johnson Arndt for the last five years or so, and her returns have been pretty much amazing.

[@Derawhitney]

I just looked her up on the internet and looked into her credentials. I wrote her a letter outlining my financial objectives and planned a call with her.

[@TomNook.]

Houses are for living in, not speculating. Very few countries have not commoditised what should be an essential in life

[@davepergola]

Isn't it great to live in your investment vehicle? Spoiler alert: it is not great.

[@lol-kc1sr]

Problem is Xi Jingpooh is incompetent. China was doing great when comrade Hu Jintao was in power

[@booooooooooooooooooooooo]

With how expensive construction, interest, maintenance, & taxation are these days. Real estate in the west is also just long term consumption masqueraded as investment opportunities for the average person. Holding property as a young person relying on debt in 2023 is so not worth it

[@markadler8968]

@@davepergola 🤣🤣🤣 Of course it is great. Owning your residence is the single greatest wealth building decision you can ever make. In 2019, homeowners in the U.S. had a median net worth of $255,000, while renters had a net worth of just $6,300. That's a difference of 40x. It is obvious from your ignorant comment your net worth is in the lower of these two categories. Enjoy being poor.

[@seymorefact4333]

⛔☢The US home and Commercial real estate is A BIGGER CONCERN since I live in the USA. Plus, US corp., consumer, federal and state DEBT IS WELL OVER $100 TRILLION DOLLARS. THAT is MORE CONCERNING than China. Since it will effect us and future generations~

[@Evelyn32423]

In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not strongly reliant on the government. This includes exploring opportunities in stocks, gold, silver, and digital currencies. Despite the challenging economic situation, it remains a favorable time to consider these investments.

[@Hazel5063]

This is true. Particularly in the stock market. There are several opportunities to generate excellent returns, but such intricate transactions can only be carried out by seasoned market professionals.

[@Scarlett34568]

Very true, I find myself lucky enough exposed to money management at an early age. Worked full time when I was 19, purchased first home at 28, fast forward time... I'm 50 now, got laid off March 2020 amidst lockdown, a blessing in disguise. At once, I consulted an advisor to stay afloat and with subsequent investments, I'm only 15% short of $1m as of today.

[@Hudson367]

This is impressive. Would love to grow my reserve regardless of the economy situation, my 401k has lost everything accrued since early 2019, at this point, I'm in need of guidance, can you point me?

[@Scarlett34568]

“CATHERINE MORRISON EVANS” is the coach that guides me, She has years of financial market experience, you can use something else but for me her strategy works hence my result. She provides entry and exit point for the securities I focus on.

[@Hudson367]

Thanks for sharing, I just looked her up on the web, and I would say she really has an impressive background in investing. I will write her an e-mail shortly.

[@anshulmishra5521]

What the hell is that halloween background music interfering with the voiceovers and the actual voice? 😅

[@LivingWithGout]

The massive money printing is hitting the reality of productivity and finite resources.

[@WellSalt-Studio]

The amount of money the Fed has printed over the years is horrifying.

[@jordie4423]

If you include public debt, Chinese debt is even worse. Local governments have 9 trillion at stake and the public has invested much of its wealth in tofu housing. That will impact future spending power and combined with a declining population, will impact the stability of China as a nation.

[@andresgarciacastro1783]

@@jordie4423 If this was true they would have huge inflation, but they have deflation

[@arcturionblade1077]

Housing speculation is a house of cards, whether in China or America.

[@UndertakerFromWWE]

America is stronger than China

[@AlanTheBeast100]

So innocent. Don't you see that speculation drives up prices and a speculation bubble, more borrowing, more speculation and you can't buy a house anymore, they go bankrupt and you pay for it via your taxes after they squirrelled off the money... Perfect!

[@seymorefact4333]

⛔☢The US home and Commercial real estate is A BIGGER CONCERN since I live in the USA. Plus, US corp., consumer, federal and state DEBT IS WELL OVER $100 TRILLION DOLLARS. THAT is MORE CONCERNING than China. Since it will effect us and future generations~

[@kristijangrgic9841]

Please if you dont want to live in suburban homes than dont. And let those who do want to live there.

[@cswann8]

The situation in China is MUCH different than in the rest of the world. In China, people don't have access to a stock market or crypto trading. I don't even know if you can buy silver and gold in China. The only real way to invest money is in real estate. And it was the CCP and the real estate companies they control that built these cities that nobody lives in. It served two purposes. It gave people something to invest in, and it let the CCP claim their economy was growing really fast. But now, anyone with enough money to invest in a property already has and the properties themselves are just rotting on the vine, because nobody has, or will, live in them.

[@bullpup1337]

I love how people talk about recovery when the crash hasn’t even really started yet.

[@DonYuJuana]

Exactly. They're also deliberately removing the context of the overall state of the global economy, and how every country is struggling with immense inflationary pressures. They're acting that China's decline is somehow isolated to its own problems, and not additionally a systemic fault of everything else collapsing.

[@multatuli1]

Evergrande

[@alexgibb8406]

I love. How u talk like u know it all . Fyi stocks has drop 70 percents and u still hasn’t call it crash😂😂😂😂

[@beepboopbeepp]

@@alexgibb8406 even if the market did drop, historically it always recovers fairly fast unless it would enter a full on depression era

[@bullpup1337]

@@alexgibb8406 Do you think the stock market is the same as the economy? News flash: the stock market is just an indicator- a temperature gauge, if you will. The real pain will come when mass layoffs, bank runs and bankruptcy and deflation hit.

[@PeterSedesse]

The bigger problem is consumer spending. There are now tens of millions of middle class Chinese people who are paying a mortgage on an apartment that is not finished, and will probably never be finished, as well as paying rent at the same time. This drastically cuts into what they can spend on other stuff, which keeps the economy low. The chinese real estate market has been a sham for 20 years, and the government looked the other way because it made GDP growth look good. The same collapse is going to happen with their EV markets where they are also scamming the GDP numbers by recycling cars to inflate sales numbers. You buy an EV, get the government subsidy, then immediately strip the battery and other expensive parts and sell them back to the car manufacturer and end up with a profit. The car manufacturer then makes, what is considered a ' new car' with the previous cars battery and sells it as a new car. This works as long as the subsidy is big enough, and there are fields of tens of thousands of new EVs that have had their batteries removed.

[@johncarpo4]

Well they've recently removed EV subsidies

[@dougsheldon5560]

They don't by the land it's a 70 year lease

[@Boudica234]

Going forward I don't see people being stupid enough to put down deposits on unbuilt property. So many people have been burned. And they're even expected to pay mortgages on these unbuilt properties. It's insanity.

[@NeoAutodroid]

I'll never buy a house that isn't built just like I wouldn't "pre-order" a video game that isn't finished. It's so stupid to place such faith in corporations.

[@SoleCollector89]

Ahhh you don't know people😅🤣

[@Boudica234]

@gdesinord1 never underestimate the stupidity of people? U might have a point.

[@rajahua6268]

It's a ponzi scheme. Worst, the regulators are part of it.

[@chowsquid]

I think your only choice the is to buy used homes….like used cars. I don’t think you have an option to buy new without down payment. There’s plenty of people that will pay the down payment game.

[@FairBeautyEssentials]

Tired of hearing about this. Nothing ever change. Nothing will change!!!

[@redwhite_040]

even 5 years ago they it would crash. but opposite happened.

[@andresgarciacastro1783]

@@redwhite_040 This time, it's definitly true, the other 15 times we said it it was wrong, but this time it's right...

[@jimjamz484]

I’m confused. Why are slight dips in the real estate market always labeled as a “crisis”, whereas rising prices for real estate is always viewed as an objectively good thing? If real estate prices just kept going up forever, then you would have fewer and fewer people that can afford a housing. In my mind, it’s inevitable that there was going to be a dip in real estate, especially considering that people where buying homes before they were even build. At some point, the bubble was going to pop.

[@doujinflip]

It's the bias favoring incumbent homeowners over those who still need one.

[@NoNo-ng9sl]

Spot on. The issue with real estate is that recently(maybe the last two decades), it's been so commoditized that people don't take that into account or refuse to believe it's not a risk-free asset. No commodity is immune to risk, but housing gets pumped so bad and it's layers of price shock is so thick, it gets this treatment.

[@ajh0p0p]

Leverage…

[@StephenGleason0]

It’s because we view real estate as an investment, rather than a product to be bought, sold, and consumed

[@jiniqeee]

Almost same one happened in Japan and is happening in S. Korea. East Asia has similar perspectives about Real Estate.

[@user-jo9lm6ti1v]

How is this going to affect market s later?

[@user-qb4mo6uh5c]

That’s why the world has been decoupling for the past 3 years so the effect in minimized

[@wangyuzhang4013]

Chinese government worries real estate bubble might busted and cause serious financial crisis, same as Japan in the past 20 year. So they make the bubble busted on purpose by themselves. This was a right decision for the country’s long run development, despite real estate will suffer in short term.

[@andresgarciacastro1783]

They've been bursting their bubble for 2 years. Construction declined over 4% and prices 6%. They're just doing it slowly.

[@wangyuzhang4013]

@@andresgarciacastro1783 that is what Chinese government wants to see. Let young people afford buying houses, let more capital flow to the industry rather than concrete and bricks.

[@andresgarciacastro1783]

@@wangyuzhang4013 Exdacly. I wish my country had this mentality, instead of "letting the market do whatever".

[@simulatednatas]

Its time that prices drop. This is idiotic to think that prices need to keep rising

[@alrighty6898]

Tofu dreg apartments. This is what happens when the people are made to buy property before it’s even built. People would’ve kept buying if developers finished the properties they sold

[@andresgarciacastro1783]

China has 2,4% of empty homes. The US has 9%. This is public data and you can look it up. It looks alike a lot because they're all clumpted up

[@danielquevedo764]

I wrote an undergrad paper about this and my professor laughed at me. Who’s the one with the last laugh?

[@Pmooli]

My biggest regret is believing in the housing crash. There is no other worthwhile investment ordinary Joe can make.

[@garywoodgrw]

I live in China, the husband of my wife's friend was the head of investment for our city. He warned me three years ago that property is no longer a good investment in China.

[@lamentate07]

Interesting. For what reasons?

[@Adam-lm5yd]

Housing+education+health care should all be accessible to all citizens of each country. No country on earth should have homless people. Human morals should be well advanced with the same pace as technology.

[@seymorefact4333]

⛔☢The US home and Commercial real estate is A BIGGER CONCERN since I live in the USA. Plus, US corp., consumer, federal and state DEBT IS WELL OVER $100 TRILLION DOLLARS. THAT is MORE CONCERNING than China. Since it will effect us and future generations~

[@tyrant_hermit]

Yes comrade. More power to communism.

[@seymorefact4333]

@@tyrant_hermit Yes Yankee. More power to TRUE DEMOCRACY! gone with US dictator regime!

[@haihengh]

They are accessible, you just need money to buy them. Nobody is baring you from buying any service. Keep in mind that all threes are based on others to provide services to you, if you think it should come as free, the are you working for nothings?

[@HungryAlienWorms]

Real estate is at its peak as salary-making populations haven't experienced the same rise in salary as a rise in housing prices. Say I made 400k a year and could afford in the past 1 million dollars houses; the same house is 2 million dollars to purchase now; there is no way my salary will go up to 800k a year to match the rise in housing price. Even with inflation, at most, my salary will go up 5% per year, and not even close to being able to afford the current housing price. More realistically, with the same 400k salary, I am only able to afford what used to cost 600k to 700k houses that are about half the size I could afford 3 years ago. What people don't realize is that not only are houses more expensive, but everything else is more expensive too, with more property tax, more insurance costs, and higher costs for everything else. Not only do things cost more, but people are also used to spending more from revenge spending habits developed post-pandemic. As you can see, even for higher middle-class earners, the market is completely broken.

[@desmondw4813]

The same old story in 2010 retold, waiting to see ghost cities occupied in 10 years' time.

[@parkerbohnn]

The Chinese real estate ponzi just moved from China to Canada. The ponzi really never ended it just moved.

[@Trgn]

Welcome to modern finance

[@chapelknight951]

Property values(housing costs) skyrocketed then there was a general consumer crash? 🤔

[@courtlaw1]

Thank god for regulations. I wouldn't be surprised if for these buildings the builders cut every corner imaginable and then bribe who ever the building inspector is. People can complain all they want but businesses need regulations or we would be screwed everywhere.

[@GathererThompson]

Called "tofu dreg construction": en.wikipedia.org/wiki/Tofu-dreg_project

[@richiexp2]

I agree 💯.

[@think_again82]

Well explained by the interviewees , its not only a decline for China but for the whole world

[@IMGreg..]

Another Enron and Subprime economic tsunami. I haven't recovered from 2008 and here comes another one.

[@WellSalt-Studio]

Compared to the Fed’s continuous interest rate hikes?

[@gaspumpin58]

temporary

[@dttra566]

Not if we are insulated from China at least financially. It is doable.

[@yeetian2774]

The world is declining way before China’s housing crisis.

[@jamiepearson9652]

This is what you get with government planning and bureacracies running things

[@westcoastpetr]

Real estate is no longer a good investment. With collapsing populations, there’s nobody to create demand. Boomer wealth was mainly created by populations’ expansions. Now that trend is reversed. And by 2080, those markets will collapse worldwide.

[@jctai100]

It was never a good "investment" but people can wrap their heads around RE moreso than bonds and equities.

[@thedude5040]

Good thing all our homes are made from wood and only last 80 years with rigorous upkeep

[@Dude1100110012]

They should never have been considered an investment.

[@captainsunbear5472]

collapsing population? Americans are literally letting in millions of illegal mexicans by the day, How is the population collapsing?

[@saynotop2w]

I wonder, though, because world population has been growing regardless. It’s only the first world where population is declining.

[@SayNoToIdiots]

So what's the conclusion??

[@AanyaDarika_]

It’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.

[@Muller_Andr]

A lot of folks have been going on about the bull rally and said stocks that would be experiencing significant growth, any idea which stocks this may be? I just sold my home in the Boca Grande area and I’m looking to remunerate a lump sum into the stock market before stocks rebound, is this a good time to buy or no?

[@westgibbs]

Such market uncertainties are the reason I don’t base my market judgements and decisions on rumours and here-says, got the best of me 2020 and had me holding worthless position in the market, I had to revamp my entire portfolio through the aid of a planner, before I started seeing any significant results happens in my portfolio, been using the same advisor and I’ve scaled up 750k within 2 years, whether a bullish or down market, both makes for good profit, it all depends on where you’re looking.

[@xavier_lucas]

True, we’re only just an information away from amassing wealth, I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market, could this coach that guides yo help?

[@westgibbs]

Having a fduciary is essential for proper portfolio diversification to make gains. My advisor is LOREN LENA WALKER who is easily searchable and has extensive knowledge of the financial markets.

[@xavier_lucas]

Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.

[@brianburgess3231]

going on AT LEAST twenty years now too

[@user-vo9wd6tx6c]

China 🇨🇳 🤝 USA 🇺🇸 🤝 Germany 🇩🇪 🤝 England 🇬🇧 Having a deindustrialized northeastern part of the country.

[@ACK333]

Do they have breakdowns of the debts and GDP profits of every provinces?

[@ACK333]

Like HK managing G bay gdp profits and debts?

[@rndmprsn3532]

Growth can't happen forever. Why push for so much growth so fast? Why do we push to ruin everything?

[@yotaiji012]

Hell yeah it will. Lots of Chinese also own properties in Korea, Seattle, Sydney, Bangkok...

[@benderisgreat95able]

Bigger question: how will it *not*?

[@richardg4764]

Isn’t this old news!! Like a year or more

[@KombatFlix]

Been collapsing in super slow motion. Evergrande I thought according to y'all was gonna take everything down last year...

[@randykrus9562]

Maybe its just me.....but building entire cities without people in them seems like a bad idea just in general........

[@jimmycurtin1423]

Wtf was that single frame at 9:03?

[@tomd1434]

I visited Changsha with my wife and son in October 2023. We live in the US and were visiting her side of the family. We took the high speed train from Hong Kong to Changsha. During the 3 hour train ride and the one hour car ride that followed, I have never seen so many cranes in a skyline erecting buildings in my life. It was everywhere you looked. People were great and food was outstanding though 👍

[@saadsalleh4858]

Heard they are moving to Malaysia.170bil.excitef.waiting for realization..Forest City is doing well.more will be moving to johore next year...

[@stephen9609]

Didn't really answer the question of whether or how it will affect the global economy...

[@raj.svc.google911]

Please cut out the jarring horrendous background music while the hosts are speaking.

[@ff6863]

I saw the similar problem in Vietnam of course in a smaller scale.

[@jamescarter8662]

I'm sure there will be some tangential effect. The tofu-dreg situation is going to definitely make it worse the the citizens.

[@Nonya969]

Yes

[@amazon4716]

With the number 2 global economy Brace yourselves people.

[@mrsweeves7035]

All bubbles burst. I tried to say that to the Chinese I knew when I was living there. I got the reply that real estate always goes up. Nothing except taxes goes up forever🤣🤣🤣

[@wenmichael6596]

The real estate market in the past 20 years boomed, letting many people live in their new houses but also bringing big troubles and even potential crises to the current or short future because it has accumulated an unbelievable amount of debt.

[@Daveyjonesvi]

People will see this in Chiba and say this is why we don’t need more homes in the US missing every point. All imma say is the US needs less zoning laws and more mixed use communities

[@crtlshift_c48]

Goodnews!

[@ScrapPalletMan]

Your background music is mixed with stomach growling noises and weird things. I can't unhear it

[@RashaKahn]

Well what’s worse it that the CCP won’t let the price drop, so now they are selling the homes with gold included in the homes to offset the price. So now buyers are getting gold and selling it to pay the difference. That’s going to mess with gold values also.

[@AJONZ79]

Speculation and “Investment” is the curse of human existence. Doesn’t matter the country, currency, government or religion. Empirical cultures will devour the human connection. There’s no excuse why any human (unless in a remote location) does not have access to food, clothing and shelter. Shame on the G7, G20, UN etc…

[@parkerbohnn]

The Chinese were put on Earth to turn everyone else into a renter even doctors, lawyers and celebrities

[@garyeuscher4499]

Shame on people for having kids with no way to raise or pay for them. We are descended from barbaric animals , can’t you tell by our behavior!

[@codelessunlimited7701]

​@@garyeuscher4499People doesn't believe that human came from animals. Only animals believe such idiotic beliefs.

[@alanjenkins1508]

@@codelessunlimited7701 And creationism is not an idiotic belief?

[@codelessunlimited7701]

@@alanjenkins1508 No it's not. Everything is under entropy, it's part of creation no evolution. Evolution requires betterment of organism it does not exist, creation is natural life cycle.

[@MithunOnTheNet]

What's with the video quality?

[@davidyolchuyev2905]

You better focus on the America’s problems than China’s. Rents in the states are completely unaffordable

[@budiantosalim]

After comparing the prices in several videos, I noticed that China's property prices during its peak is 3 times the prices in Jakarta Indonesia (a similarly developing country), no wonder the bubble burst and the prices are decreasing by about 60% or more, almost back to Jakarta levels.😅

[@user-uh6wb3hm6u]

做为一个中国山东人，说一说这两天售楼小姐给我打电话的内容，我这属沿海小城市，房价略高，均价每平在1万人民币左右，跟年前比略降，价格很多持平，有的最多降10%。中国出现房地产崩溃是不可能，最大因素是中国城镇化率在65%，意味着还有两亿农民进城，这是最大动力。

[@bryanshealy1260]

First guy is wrong. They don’t out a down payment on an unbuilt house. They buy the whole thing.

[@untouchable360x]

"Maybe that is a question you should ask Chy-na!" DJT

[@ruis2345]

at first galance, i thought the title says Canada, oh well

[@agentbananauk]

I struggle to believe that china is building these houses to modern standards as the person said in the video. From my experience of hotels in china they're often build terribly and cut loada of corners. Even the 5 star hotels initially look good on the surface but doesnt take long to see loads of badly thought-out things and clear cost cutting to give an inferior product.

[@SCFLEUR]

The whole world just got so greedy in the last couple of years. I wonder why? 🤔🙄. And it seems as though it’s all coming home to roost.

[@conflict7269]

Notice they have a ton of blue roofs very ironic

[@jiniqeee]

Almost same one happened in Japan 3 decades ago and is happening in S. Korea nowadays. East Asians have similar perspectives about Real Estate.

[@Pmooli]

But houses are still expensive in the big cities in Japan. The only risk is buying offplan. Just buy a finished unit with common sense.

[@lunasky5635]

Am i crazy or is there a mandolin playing “oriental” style music in the background? Why do US shows do this? I can’t continue to listen to it

[@milosnestorovic1594]

Stability, it is Policy,it is Known....

[@user-uf1uq4yn1q]

Can the rent become affordable, please?

[@EllieMaes-Grandad]

Do you mean subsidised? By whom?

[@user-uf1uq4yn1q]

@@EllieMaes-Grandad not subsidised, lower cost. I don't care if it means a major financial crisis, I can't make ends meet...

[@DY-fy2jh]

Crisis? Nothing more than regular market adjustments

[@fglatzel]

People just don't learn, because investing your life savings into a property that will never be build, sounds pretty dumb to me.

[@domjong6329]

Slow motion isn't going fast enough for me!

[@joshuaupham5993]

These apartments were never bought to be lived in, only investment.

[@T-AH-LOW81]

Volume 4 this video On phone compatibility? WAS VERY LOW!!!!!!!!!!!!!

[@milosnestorovic1594]

The Bubble and Regulatory Constrains, it is INEVITABLE Growth and Fall.China s real estate crisis have remarcable IMPACT to Global Economy, BUT NOT KEY Absolutely...❤

[@Lucas-yy3dh]

Maybe Australia could get the Chinese to build us some houses!

[@Asimmehra]

What happens to prices in US if China and by extension Chinese manufacturing collapses?

[@IamP3ngu1n]

Went for a walk in a "Country Garden" and got mugged by a bunch of Bankers !

[@joebloggs7058]

I'm homeless but save what I would have paid in rent, into my bank. So far I have saved a house deposit, but am still unsure if I want to buy into this house of cards or buy a tiny home outright with no debt and off-grid living, I think I would enjoy the simplicity and the energy in/energy out harmony with the natural environment. If more people did this, housing demand reduces and the prices stabilise very quickly

[@saynotop2w]

I hope you make it

[@rajahua6268]

I will make sure you have clean water

[@joebloggs7058]

@@rajahua6268 It's okay I would make sure I set up water infrastructure near to my home. Otherwise I am a truck driver and have a licence to drive a water truck so I could drive it there full, and run it into a storage facility onsite.

[@niteshniteshjain1151]

Chinese economy boom was looking like a gas baloon which can burst any time

[@levelazn]

the title suggest that i hasn't and probably wont. :)

[@MetaView7]

OMG The Sky is Falling ! *_The Sky is Falling !_* The Sky is Falling !

[@kelvin.008]

Invest in Singapore, the government will never allow the market to tank. 90% of citizens are home owners 😊

[@mineown1861]

The chinese real estate market turned out to be a paper dragon too , go figure . If you build it the vulture funds will come .

[@freewifi510]

well they are dropping interest rates

[@horace68]

This is one year old news, China foreign reserve grew 2.1 percent third quarter of 2023. No collaps in sight.

[@benroberts6119]

The background music is extremely distracting

[@nomercynodragonforyou9688]

No

[@user-pn1ce3dz5c]

CNBC Says there are problems. Time to buy.

[@shiftymcgee9359]

Frederic Neumann sounds like a love child between Stellan Skarsgård and Werner Herzog.

[@lindapindabelinda3570]

Ponzi schemes on that scale have to make an impact. Hopefully, the justified lack of trust in their pattern of collecting money far ahead of delivery will result in a better market for complete homes.

[@dixonhill1108]

Lol china is completely sunk, they have sky rocketing youth employment rates, yet their youth population is 50 million smaller than they thought it would be. How do you have major work force shrinkage while having crazy high unemployment rates. The answer is their consumption economy has also completely collapsed. Their exports are also collapsing by 15% year after year, and it looks like the west is committed to maintaining that year after year decline.

[@jordie4423]

True. If you include public debt, Chinese debt is even worse than the American debt. Local governments have 9 trillion at stake and the public has invested much of its wealth in tofu housing. That will impact future spending power and combined with a declining population, will impact the stability of China as a nation.

[@wenmichael6596]

Chinese local governments rely too heavily on the revenue from the real estate sector including but not confined to the big money from selling the land, but now it has become harder and harder for them to sell land and therefore huge shrinkage of local fiscal incomes. It is indeed a grave crisis in the making.

[@chowsquid]

Hopefully the villagers that go paid for their land years ago didn’t spend it all

[@muhammadhanif4113]

Of course it will,steel,oil,cement,glass,even finance industries losing their biggest consument.

[@AAAB183]

Audio levels all over the place from one person to another.

[@sunny-sq6ci]

its both sad and fascinating that roughly every 10-12yrs something like this happens to the global economy. let's not forget what happened in 2008. let's just hope that things don't spiral even more out of control

[@parkerbohnn]

Thank the guy who got a Nobel prize for saving the world in 2008. Fast forward to now and he destroyed the world with his QE and interest rate suppression.

[@willqin4628]

That is totally different story in 2008. In 2008, basically the whole finical sector got involved in the scam and $uck money from other sectors. And eventually, some player in the sector think they got enough money and need to get rid of the it. Then the market collapse. But in China, the main issue are the developers. They have overly taken the risk and make themself unrecoverable. And the government just said you should not do that then the developers collapse.

[@justinwolf7490]

This is way different than 2008. This real estate bubble is like 100x what it was in 2007 in US. Also 30% of China’s economy is real estate. Business and investment fleeing China. The ccp is making it worse making the bubble bigger. They will never fill even half of these homes they have built and the people paying the price are the regular Chinese people with no rights.

[@jeni719]

In the USA, with the FED at basically 0% interest rates, or even negative if you include inflation, money was basically free to the big banks for a long time. This encourages speculation. The FED is the cause of all this. 0% interest rates should only be used in a recession, there needs to be a cost to borrow, so wise investments are made.

[@dixonhill1108]

The 2008 financial crisis never ended, we just kept piling up debt to delay the economic depression that is suppose to hit. The irony is China's economic woes are connected to them fueling the global economy through the 2008 crisis. They fueled global exports, when western countries were spending relatively small amounts on baleouts.

[@Flitalidapouet]

That's so clever, not to repay offshore debt. It's very much free money, and stops investments companies meddling in your internal politics. Good move China 👍 👏👏👏👏

[@chadlimestall9201]

decent video but the narrator sounds like he is using a damn blue yeti microphone

[@tomgreen9588]

never