empty high rises
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China's Ghost Cities
China's Ghost Cities
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The largest uninhabited cities are in China, these are not cities that have been abandoned but cities that have never been occupied in the first place because people cannot affort to live in them, I am fascinated by these places even if they are an ominous warning sign to the Chinese economy.
Here is a video about them, there are empty cities built for millions of people.
http://www.youtube.com/watch?v=pngdQo205fM
Pics:
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http://www.odditycentral.com/pics/ordos-chinas-modern-ghost-town.html
Pretty crazy
The largest uninhabited cities are in China, these are not cities that have been abandoned but cities that have never been occupied in the first place because people cannot affort to live in them, I am fascinated by these places even if they are an ominous warning sign to the Chinese economy.
Here is a video about them, there are empty cities built for millions of people.
http://www.youtube.com/watch?v=pngdQo205fM
Pics:
http://www.odditycentral.com/pics/ordos-chinas-modern-ghost-town.html
Pretty crazy
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They are built to speculation
^^
You are living on a different planet, read this article from the NYTimes, I just posted some snippets but read the full thing. This is the definition of a bubble.
Edit: That was meant for Kenwen not you Jay. China can not physically support this amount of growth. It's very little actual economic growth, and all government funded.
"... In the last few years, cities’ efforts have helped government infrastructure and real estate spending surpass foreign trade as the biggest contributor to China’s growth.
...spending on so-called fixed-asset investment — a crucial measure of building that is heavily weighted toward government and real estate projects — is now equal to nearly 70 percent of the nation’s gross domestic product. It is a ratio that no other large nation has approached in modern times.
Even Japan, at the peak of its building boom in the 1980s, reached only about 35 percent, and the figure has hovered around 20 percent for decades in the United States..."
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Building Boom in China Stirs Fears of Debt Overload
By DAVID BARBOZA
Published: July 6, 2011
"...But there are growing signs that China’s long-running economic boom could be undermined by these building binges, which are financed through heavy borrowing by local governments and clever accounting that masks the true size of the debt.
The danger, experts say, is that China’s municipal governments could already be sitting on huge mountains of hidden debt — a lurking liability that threatens to stunt the nation’s economic growth for years or even decades to come. Just last week China’s national auditor, who reports to the cabinet, warned of the perils of local government borrowing. And on Tuesday the Beijing office of Moody’s Investors Service issued a report saying the national auditor might have understated Chinese banks’ actual risks from loans to local governments...
...In the case of Wuhan, a close look at its finances reveals that the city has borrowed tens of billions of dollars from state-run banks. But the loans seldom go directly to the local government. Instead, the borrowing is done by special investment corporations set up by the city — business entities whose debt shows up nowhere on Wuhan’s official financial balance sheet.
Adding to the risk, the collateral for many loans is local land valued at lofty prices that could collapse if China’s real estate bubble burst. Wuhan’s land prices have tripled in the last decade...
... A recent report by the investment bank UBS predicted that local government investment corporations could generate up to $460 billion in loan defaults over the next few years. As a percentage of China’s G.D.P., that would be far bigger than the $700 billion troubled-asset bailout program in the United States.
... This year, relying largely on bank loans, Wuhan plans to spend about $22 billion on infrastructure projects, an amount five times as large as the city’s tax revenue last year. And aspirations notwithstanding, Wuhan is still relatively poor. Residents here earn about $3,000 a year...
...In a report this year, the investment bank Credit Suisse identified Wuhan as one of China’s “top 10 cities to avoid,” saying its housing stock was so huge that it would take eight years to sell the residences already completed — never mind the hundreds of thousands now under construction."
You are living on a different planet, read this article from the NYTimes, I just posted some snippets but read the full thing. This is the definition of a bubble.
Edit: That was meant for Kenwen not you Jay. China can not physically support this amount of growth. It's very little actual economic growth, and all government funded.
"... In the last few years, cities’ efforts have helped government infrastructure and real estate spending surpass foreign trade as the biggest contributor to China’s growth.
...spending on so-called fixed-asset investment — a crucial measure of building that is heavily weighted toward government and real estate projects — is now equal to nearly 70 percent of the nation’s gross domestic product. It is a ratio that no other large nation has approached in modern times.
Even Japan, at the peak of its building boom in the 1980s, reached only about 35 percent, and the figure has hovered around 20 percent for decades in the United States..."
Building Boom in China Stirs Fears of Debt Overload
By DAVID BARBOZA
Published: July 6, 2011
"...But there are growing signs that China’s long-running economic boom could be undermined by these building binges, which are financed through heavy borrowing by local governments and clever accounting that masks the true size of the debt.
The danger, experts say, is that China’s municipal governments could already be sitting on huge mountains of hidden debt — a lurking liability that threatens to stunt the nation’s economic growth for years or even decades to come. Just last week China’s national auditor, who reports to the cabinet, warned of the perils of local government borrowing. And on Tuesday the Beijing office of Moody’s Investors Service issued a report saying the national auditor might have understated Chinese banks’ actual risks from loans to local governments...
...In the case of Wuhan, a close look at its finances reveals that the city has borrowed tens of billions of dollars from state-run banks. But the loans seldom go directly to the local government. Instead, the borrowing is done by special investment corporations set up by the city — business entities whose debt shows up nowhere on Wuhan’s official financial balance sheet.
Adding to the risk, the collateral for many loans is local land valued at lofty prices that could collapse if China’s real estate bubble burst. Wuhan’s land prices have tripled in the last decade...
... A recent report by the investment bank UBS predicted that local government investment corporations could generate up to $460 billion in loan defaults over the next few years. As a percentage of China’s G.D.P., that would be far bigger than the $700 billion troubled-asset bailout program in the United States.
... This year, relying largely on bank loans, Wuhan plans to spend about $22 billion on infrastructure projects, an amount five times as large as the city’s tax revenue last year. And aspirations notwithstanding, Wuhan is still relatively poor. Residents here earn about $3,000 a year...
...In a report this year, the investment bank Credit Suisse identified Wuhan as one of China’s “top 10 cities to avoid,” saying its housing stock was so huge that it would take eight years to sell the residences already completed — never mind the hundreds of thousands now under construction."
Yea it's mindboggling how people can think that empty cities and 100+ supertalls won't have dire future consequences, even in a wealthy country, let a lone a developing one.
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