Here are links to a pair of fascinating accounts of China’s ghost cities.

http://www.youtube.com/watch?v=wm7rOKT151Y

http://news.sky.com/home/world-news/article/16117228

It is estimated that there are 64 million empty apartments in China at the minute with vacancy levels of 70% or more in a number of cities.  One city has been built for 1 million people and has an occupancy of 20,ooo.  Another is a new city designed for 12 million, the vast majority of which is empty.  As is one of the world’s largest shopping mall, with all but a handful of the 1500 units empty (6 years after opening).  Building continues everywhere, fuelling GDP growth (sound familiar?).  The assessment is that China is experiencing a massive property bubble that if and when it pops will have a massive knock on consequence for China’s economy and by implication the global economy.

Rob Kitchin

 

 

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