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The Ghost Towns Of China

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http://www.dailymail.co.uk/news/article-1339536/The-ghost-towns-China-Amazing-satellite-images-cities-meant-home-millions-lying-completely-deserted.html

These amazing satellite images show sprawling cities built in remote parts of China that have been left completely abandoned, sometimes years after their construction.

Elaborate public buildings and open spaces are completely unused, with the exception of a few government vehicles near communist authority offices.

Some estimates put the number of empty homes at as many as 64 million, with up to 20 new cities being built every year in the country's vast swathes of free land.

The photographs have emerged as a Chinese government think tank warns that the country's real estate bubble is getting worse, with property prices in major cities overvalued by as much as 70 per cent.

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Umm, I was pretty sure that in China new builds go unoccupied as as soon as someone moves in the value drops. Seem to remember watching Paul Merton in China and they buy them as investments because the unoccupied property appreciates with time.

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that's surprising..

that means chinese have made it empty purposefully?

if they release these into market, the supply will be so large that the prices will crash for properties !!

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Reminds me of this joke.

Whats the difference between chocolate and investment chocolate?

Nothing but you're not supposed to eat "investment" chocolate!

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Umm, I was pretty sure that in China new builds go unoccupied as as soon as someone moves in the value drops. Seem to remember watching Paul Merton in China and they buy them as investments because the unoccupied property appreciates with time.

Buildings take on the chi of inhabitants so best keep them empty

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Buildings take on the chi of inhabitants so best keep them empty

Papers readers take on chi of newspaper and spout anti imigration and all things foreign comments.

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Papers readers take on chi of newspaper and spout anti imigration and all things foreign comments.

It's the other way round. The paper has a resonant frequency which matches the readers chi

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The places are heaving normally, they just go inside when GoogleSat-1 flies over.

Clearly theyre daytime photos which means everyones at wark. dahhhhh !

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When this bubble bursts, will it have a significant effect on the UK economy?

Negatively, because the rising middle class who are the ones who hold all this property about 200 million of them are wiped out. The 1.1bn factory workers don't bat an eyelid. Except that there are 200 million more cheap workers since they were wiped out. This means imports get even cheaper meaning the UK trade deficit becomes a chasm

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Umm, I was pretty sure that in China new builds go unoccupied as as soon as someone moves in the value drops.

Just like Romania in the 80's then?

(I wonder if they bother to plumb these Potempkin villages?)

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Just like Romania in the 80's then?

(I wonder if they bother to plumb these Potempkin villages?)

Or waste $9000 a tonne copper wiring them up, or miles of aluminium cables to connect them to power stations, etc.

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Is this not like in Spain where the banks are holding on to properties at a high valuation because if they tried to sell them the market would crash ... well crash more than it has.

In North africa also if you own the bank and the developer and your a VIP you can play pretend for as long as you like.

Those silly tourists who come and buy a 200k house in a country where earning 500 quid a month is good going.

Just imagine the resentment your middle class you went to university you worked hard and your a manager....you have 800 pounds a month salary.....but a flat is 75000 and a house 250,000 with 30% deposit needed and you current rent is 300 a month. Your fiance has left you for a guy with a low paid job but his dad gave some land.

I watched a TV discussion show the other day and the guy slipped that up to 40% of new build are empty in Tunis.

The hilarious fact now is that they speculated so much they made the product too expensive for the European/Expat investors who where supposed to buy them! Not to mention foreigners want to be near the sea and not in blocks 1km from the beach.

I have said it before if you issue enough cheap money you dont need customers just a bank and you can just leave them all empty. Globally something even more undesirable is happening as its moving to food people will borrow cheap money and buy all the tuna/rice/etc and leave it there to control the price.

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In North africa also if you own the bank and the developer and your a VIP you can play pretend for as long as you like.

Don't know about Tunis, but Cairo seems full of half finished flat blocks!

I was there in November. :huh:

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Don't know about Tunis, but Cairo seems full of half finished flat blocks!

I was there in November. :huh:

Egypt is a different kettle of fish the levels of poverty there are absolutely shocking, Morocco also has a gulf also between the haves and have nots.

To buy a luxury property in such places is like being a property day trader better to make the money and get out rather than long term as they are powder kegs if we get a few years of high food inflation.

Luxury property is like tourism very little goes to the little man it goes to the elite and foreign tour operators/hotel chains/estate agents which do not complain. If you want to help a economy invest in small businesses locally not apartments and houses.

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As someone else pointed out, the housing market in China works like the car market does here. The maximum value of a house is when it's brand new and unoccupied, after which it depreciates.

this is how it should work everywhere else. there lies the scam

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Negatively, because the rising middle class who are the ones who hold all this property about 200 million of them are wiped out. The 1.1bn factory workers don't bat an eyelid. Except that there are 200 million more cheap workers since they were wiped out. This means imports get even cheaper meaning the UK trade deficit becomes a chasm

Except where are all the extra 200 million going to work? It screams overcapacity. From what I've read when China started spending their stimulus money, internally it resulted in them bringing forward the next 20 years worth of construction plans. They're coming up with more grand construction schemes (the London to Beijing rail line) to keep their GDP going but to what end.

If China has to build cities that are going to be empty for twenty years to keep their GDP growth going now, then when that's finished, what's next? Build cities that will be needed in forty years. You can't keep stealing growth from the future.

An export market won't save them, not with the west in decline. China needed a roaring world economy to do it which isn't there.

Chances are when the facade fails and I can't see it being too far away, China will fragment.

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Chances are when the facade fails and I can't see it being too far away, China will fragment.

I've said that many times myself via my blog. The danger is that they are faced with a Germany 1930s style... I.e. the CCP want to stay in power at all costs. So when faced with lots of young angry people you can't execute they may well turn to war as a distraction. Perhaps the reason for rising nationalism. It might even be an agreed before hand war between the UN forces and China in N Korea or over Taiwan or with the Russians in Siberia or Kazakhstan. It'd be a replay of the Korean war. Except there has been 60 years narrowing of the technological gap and we're outnumbered by an incredible margin as well as the PLA being much better equipped than 60 years ago. All EU/US nations would conscript the undesirables to rush Chinese machine guns. The undesirables of China would be conscripted to rush UN machine guns.

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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