China’s Real Estate Ghost Cities
Over 64 million vacant apartments… I just stumbled across this documentary, so hard to imagine! Demolishing old neighborhoods and overbuilding new cities with little to no demand for occupancy due to high cost of living. It’s estimated that 10 new cities a year are being built in China. One example, the city Ordos was a government planned infrastructure meant for 1 million residents and built in just 5 years. No one has yet to move in. The motivation was likely GDP- Gross Domestic Product(an estimate of a country’s economic activity). One major way a government can raise it’s GDP is to spend more. The more China builds, the more it’s economic activity increases, and the higher the GDP. It seems like this is a huge real estate bubble waiting to burst.