Tuesday, April 5, 2011
Fascinating video on over-construction in China
[Partial transcript] It's 11am on a Thursday morning and Zhengzhou's centre is deserted, shops unoccupied, hundreds of apartments uninhabited. Prices for apartments here range from $70,000 to $100,000 - a fortune in a country where the average worker's annual wage is around $6,000. But units here are selling - the vast majority as investment properties whose owners live in other parts of China. The agent bundled this prospective buyer away before we could talk to her. "Do you imagine that any of these apartments will be occupied in five years?" "I think that the occupancy rate in five years will still be around 25%." Millions of expensive empty homes and millions of Chinese who can't afford to live in them.