We’ve all heard the stories about cities in China sitting empty… apartment buildings with no tenants… offices with no workers… streets with no people.
Hundreds of new cities have sprung up in China over the last 30 years, as part of the long-term plan to modernise and urbanise China. The government wants to move 260 million people out of farms and fields and into towns and cities by 2026. To put that in perspective: That’s like the entire population of Indonesia (or 80 percent of the population of the U.S.) packing their bags and crowding into brand-new high-rise apartments.
But needless to say, that’s not an easy process. And sometimes there are more buildings than there are people ready to move in at that moment. Thus… the “ghost city” images that have haunted investors.
But just how big of a problem are these “ghost cities” for markets and for the Chinese economy? And do they suggest that the Chinese real estate market is in a bubble? Or is it something else entirely?
I reveal the answers to these burning questions – along with the part of the story the media isn’t telling you – in the video below.