You say that like it’s a bad thing? Realestate investment is objectively bad for a country
Comment on China vows to stay 'safe and promising land' for foreign investment
11111one11111@lemmy.world 1 week ago
Lol I mean all tariff shit aside, isn’t China still on the brink of a major real estate collapse? Last I heard they have entire ghost towns built with noone living in them. Who in their right mind is trying to invest in Chinese realestate?
shani66@ani.social 1 week ago
freagle@lemmygrad.ml 1 week ago
You know how you avoid scarcity of housing? You build a surplus. Let’s say China has 1Bm people, what’s 1% of that? 10M. So if they built 10M vacant dwellings, they would have a 1% surplus. That’s a very small amount of surplus in the grand scheme of things especially considering the uneven distribution of populations, cultures, jobs, etc.
So in the USA, where they have more vacant dwellings than homeless people, they keep those dwellings off the market and make sure prices stay high and build new dwellings primarily at the upper end of the economic strata. Meanwhile in China there’s little to no homelessness.
So no. There is no real estate crisis in China because you are defining a real estate crisis as speculators who locked up their money in housing investments losing their profits. China defines a real estate crisis as people living in tent cities under highways in major cities with a huge amount of money.
Real estate in China isn’t how Chinese people retire. It isn’t how the petite bourgeoisie scheme to extract rent for the least amount of effort possible. Real estate in China is about housing people.
stink@lemmygrad.ml 1 week ago
Real estate is not seen as an investment in China like it is in the west.
I remember being taught in the first grade that Food, Water, and Shelter were all necessities for survival. Needs, like housing, being seen as speculative assets is why the EU and USA are having their current housing crisis.
BrikoX@lemmy.zip 1 week ago
That is not really the case. China used the real estate market to boost GDP grow on paper (it did have real grow it was just highly inflated) by forcing local governments to borrow unrealistic amounts of money via special bonds and now the whole market is stagnant as they can no longer keep up with that debt.
And Chinease citizens did see it as worthy investment, but after the crash they got burned and now are not investing at all which just deepens the issue.