I have traveled to Shanghai many times and know some locals. This video is very true. One man owns five condos. They are all empty and he never plans to rent them. I ask why? He says if he rents them then the value will drop. He says the price of the condos go up more than 10% per year and are great investments. They have no property tax. This whole thing is a house of cards.
@@chozer1 doesn't mean they are, they can wear red and sing Internationale until their throat burns out and it still doesn't change the fact that they're capitalist
what american city are you gonna copy and have it look like a cultural example? i imagine that place has some sort of interesting architecture or something.
Yeah lol. They have plenty of people but they have much more land and housing than the amount of people. I am thinking China can fit maybe 2 trillion people before the whole country becomes overcrowded.
And then Trump enters the chat and says WE ARE FULL WE CANNOT HOUSE ANY MORE PEOPLE IN THE COUNTRY when there is actually plenty of space and the USA is slightly a bit bigger than China
Dont get wrong. This channel is pro china. Very very subtle. And I am sure the narrator is Chinese origin. Subtle Chinese propaganda. Check all his China videos.
It's creepy when I realize the resident area is almost empty, the buildings look fancy, but not a single human present. It was 2013 in middle of a trip.
if you were traveling in China then one thing that must be taken into account is that China has a planned economy and most of those story's about entire city's being empty is just people that have no idea whats going on. the Chinese will build a city then build factories and all of the other things needed including jobs,stores,food/restaurants and all the rest then once everything is finished and ready they will start moving people out of the country side and into the city. this is what has happened with all of those city's that were written about and one would think that people would get it by now but most of the media love to hate on china so propaganda seems to be more important to them than the truth!! this is just a country developing under a planned economy that's all..
Chinese investors snatching up urban property in the US is very real, especially since they generally buy in cash, making them more attractive buyers than domestic ones. All my friends who have tried buying a condo here in DC have found themselves often getting pushed out by Chinese buyers.
@@lintang790 Of course, but it's not just chinese people. Even ultra wealthy indonesians do this. Where there is profit to be made, people will come. Just so happens Asia has been on an economic boom and there are a lot of people sitting on top small fortunes. Property is very good diversification anyway, it a no brainer for a lot.
@chinese commenter for those not hard learning truth, regardless who owns it the government gets property tax which is then spent on all the stuff the government does. That's fine. The issue is that it makes it harder for people who actually live in the city to buy property to house themselves and their families. And that's already really hard to do in my city (third most expensive city in the country)
@@lintang790 100%. I wouldn't care if the investors were actually living there, then they're just trying to find a place to live like everyone else and just have a cash advantage to do so. Sucks for the average person who'll likely need a mortgage to buy a house, but it's still fair if the buyer is living there.
Born and raised in Vancouver. It’s a huge problem here. Housing prices in greater Vancouver are insanely high and many are not justifiably used as homes but rather investments. An average condo in Vancouver is over $1,000,000 and actual houses are often worth well above 2 or 3 million dollars. Entirely caused by artificial investment demands rather than actual local necessity.
Now they're starting to buy up houses/condo's in other cities like Vancouver British Columbia, Canada & Seattle Wash. USA, leaving them empty too & creating a lack of housing for locals to buy/rent, forcing people to move further away from where they work. That's why in British Columbia they created a new law called "Empty Housing Tax" If you buy a home & don't live in it, leaving it empty you have to pay a tax that is 1% of the houses value every year. In 2019 the local government is planning to "triple" that percentage. "For Sale" signs have been going up lately...LOL !
@@SaintMartins TBF, that'd also prevent for example, Americans from buying Vacation homes, and it's documented that much of the investment money & property is being funneled though family members living in Vancouver. It also discourages foreign developers from building anything, because every single house would have to be pre-sold or designated for rentals before construction starts.
I used to live in Beijing, China. While living there, I understood that Chinese cannot “own” real estate property - they can only lease it for 70 years. Perhaps there are different “ownership” arrangements?
It is not "ONLY lease for 70 years", it is "tbd" for the case after 70 years, because of the ongoing political/economic reformation process. Now the situation is getting clear. The "70 years' owner" can prolong the "lease contract" for another xx years with y% value money.
@@jenniferlambert3886 Yes still leasing. That is essence of being a communist country. Land is owned by country 100%. Btw, maybe it is the case in European rule based societies, but in some other countries, real estates are also based on leasing. To name a few, Israel 50%, India 40%, France 30%.
@chinese commenter for those not hard learning I am trying to understand your points, so might be some misunderstanding... - Yes the country owns all the land, 100%. If you dont understand why the government compensates you for using the land/house, you should check various forms of 土地公有制 - You are basically using the land, not owning the land. If you own the land, you can do whatever you want to it. Now you need to report to government about every details if you want to farm or change it to residential purpose.
In the west we also lease. First from the bank and also from the government forever. That’s called a mortgage to the bank and taxes to the government. You never really own your land in the west either.
As a person living in China and as a person that has had students also discuss this issue, I'd say you've done a great job explaining the circumstances of the housing market.
@@kalm4757 For the same reason the wealthiest Americans move their bank accounts off shore to avoid paying taxes....because they can and common people shouldn't.
as a Chinese born Canadian, I have to say this is THE most unbiased and concise informative video about China i have watched so far. It tells every bit of truths and scheme about the real estate economy in China. right to the bulls eye.
@@sonnyhuimingzhou418 Bottom of the description. czcams.com/users/redirect?q=https%3A%2F%2Fpastebin.com%2FFPVU9SaG&event=video_description&redir_token=qwD8axfc5iSp9_-K7IqN_3p9SDh8MTU2ODAxMjQ5NEAxNTY3OTI2MDk0&v=f5SE47Xjx2Q
@@abbyalphonse499 there are most definitely some good sources there and while I 100% agree that ghost cities and expensive housing is a problem in China, some of the sources this guy relies on can be called biased towards Western foreign policy to say the least (he cites Foreign Policy for god’s sake).
@@ShehuStebe You're mistaken if you think there's one single cohesive western foreign policy, but do tell me of these unbiased sources you presumably know.
As Chinese, I wanna to say the main reason why Chinese people do a lot savings is we don't have developed social welfare systems like EU or US, we need money to prevent us from risks, like diseases or any kind of accidents,that is it.
not very informed on the social welfare systems in the u.s. are you? have you ever seen videos of the homeless on the streets of los angeles, or any other city in america. have you ever seen the dockets of bankruptcy courts across the country where medical bills have forced people to lose everything they have ever worked for? i would advise you, as well as the person that did this video, not to take as truth everything you have ever heard about another country. i think social welfare in china took a big step backward around 1980 or so when the health care system that began under Mao was not improved upon but discarded in favor of western style capitalistic systems. unfortunately i see china becoming like the u.s. in the future. a nation with a handful of obscenely wealthy individuals and millions of, billions in the case of china, poverty stricken people living from measly paycheck to measly paycheck.
Gilbert Salazar US call itself Free country, FOE.. and arrests journalists for leaking videos of soldiers killing inocents..... Establishment is not the government u elect for 4 yrs, establishment is about controlling people's mind. freedom, ideology etc r just matter of perspective.
Chinese Government: But we really have a lot of it! It's going to fall down in about 10 years though so please buy quickly. Chinese People: *takes suitcase of cash to Canada*
Not yet but we never know the future I already seen younger generations looking to leave their own countries because there is no future for the younger generations.
Kevin Smith I don’t really think that’s true, lots of Chinese international students are choosing study abroad bc the unbalanced and stressful education in China. Lots of people eventually will choose to go back to China. I would say only 20% of Chinese students want to stay.
They are empty because they are not real homes for those who badly need them, they are just speculation items, and speculative bubbles always end badly...
@@AAhmou In Australia if you buy property and you have it financed actually not only you don't pay taxes but you get tax exemptions, so your brain-storming would be in vain here !!!
@@xZeroTheGreat The Chinese system is based up on government owned companies. All the company owners have to be part of the government if they make enough money. It would mean a restructuring of China's governmental model. This is not a system that just happen to exist this way. It all comes down to having all companies belong to the party, so that the leaders of the party becomes the largest business owners in the country (in a practical sense). The the chines government can and do change owners of these companies when they want to. It is often called being investigated for corruption charges.
@@noblesavage413 Many of those homes were once lived in (being out in rural areas and in currently in unlivable condition), they just are no longer lived in as more and more people move to cities. Meanwhile the ones in China have never had people living in them and it's debatable if they ever will, being located far away from desirable job markets. It's a huge difference to end up with 20 million empty, once occupied homes over many decades vs actively building 50 million empty, never touched ones in just one decade.
Exactly. The concept of "Face" is paramount to understanding why China does what it does. How others percieve you and avoiding blame is absolutely critical, especially to those in power.
@@Swagalious689 Name me which country "liquidated [its] sovereignty" for Chinese debt forgiveness. That's not debt forgiveness. That would be "seizing collateral"
Henning! hou ju bu jian girl! That's why you dumped me? I never did buy a house, instead I invested in Apple, Google and Amazon, made lots more money than anybody ever made on a house. Please don't try to get in touch, my wife wouldn't like it. Best of luck to you.
My whole life revolve around paying off my mortgages. Yet strangely, I felt happy. I know this sounds nuts. To paraphrase a line from the Movie Munich " Some day you can have a kitchen like this, it is costly but home always is."
Property tax would be insane! Just suddenly expecting millions of people to open their wallets if they want to keep their empty properties would just burst the bubble immediately.
Problem is, can they really sell those properties for the amount of money they expected? Property tax means everyone wants to sell their properties out and doesn't want to buy them.
GeneralSol I don’t think that’s what he means. I’m guessing he means is the U.S intentionally REGULATES housing preventing developers to build housing to KEEP UP with the market. Like the entire state of California. They intentionally regulate and zone land so developers can’t build to keep up with the demand of the market.
There is actually waaay more houses than people in the US and most of the world. This is because many people buy 2nd or 3rd homes. Essentially if your unable to buy a house due to market conditions you can blame the rich who use them as an "investment"...
@@lilgangstacj Have you ever been to Canada? They even keep all the land off the market driving home prices through the roof even without the help of the Chinese.
Very informational and interesting video. You hit the nail right on the head. Now almost 4 years later, the housing bubbles already popped and keeps bursting :(
I have a friend in China, who is a teachers assistant and he owns three homes. Eastern China is is considerably more expensive than West. That's why the salary vs price per sq ft doesn't add up, because the disparity is huge. He told me you can buy small houses for a few thousand dollars in some areas (which is what he did).
Part of the story I must say. The reason why an increasing number of house transaction are Chinese people buying their second/third house is the imbalanced distribution of wealth within the country. The amount of transaction of second/third house does not simply imply that the number of Chinese people who can afford a second/third house increases. The truth is an extremely small fraction are possessing quite a huge share of the cake. At least 60% household are still struggling to afford the first house for their next generation and they account for only 1/3 of the property transactions. That small fraction is a well organized interest group. There exists interest conflict in the process of pushing down the price of houses to an affordable level. Because this group possess a large amount of the house stock, any decrease of prices would lead to a plummet of their wealth. And that's why they became the barrier between the macro policy from the central gov and the actual implement of local gov. Btw, central gov is well informed of such situation but they still have to keep an eye closed on this issue because they rely on local gov somehow on implementing various policies other than this.
Something similar is happening in India as well though not on a similar scale. Housing projects are cropping up everywhere like crazy and a small section of extremely rich people are buying them up. Most workers living in our cities can even dream of buying their own apartments.
Eric Christian lol no it’s just that it breaks many basic rules of flag design - like a good flag should be simple, use few colours, and be easy for a kid to draw. To be symbolic is usually to be simple. And Florida’s flag is just too messy and complicated. But maybe some people still like it. It’s nothing against Florida, I just think they deserve a nicer looking flag.
This was prophetic. I remember watching this about a year ago and paying attention to the signs this video pointed out. We're now seeing it happen. Frighteningly remarkable.
While I agree with your comment, I have to say that this wasn't the first time anyone called this out. It's been predicted for more than a decade. The only thing that wasn't accurately predicted by anyone was the "when" this was going to happen.
@Al Cubz Don't you realize, bubbles are ment to burst its not when its how. I seriously hope it doesn't because China is a major economic player, china's fall will trigger global economic crash of an unprecedented scale. Nope not good but it can't continue forever.
@@kundanchaudhari3951 Their crash would actually not affect other countries very much. The most affected countries would be North Korea, and the countries in Africa China is investing in. China relies on the big consumers like the U.S.A. and Europe, alot more than those consumer countries rely on China.
“50 million empty homes” California: *sweats nervously* Edit: Guys. This comment is just supposed to be a funny joke. Don't get into the politics of it.
Hey. I love your channel. Just so you know: I almost never watch your videos, but instead use them as podcasts. So I like to learn but not necessarily visualy. Much love!
Sell it before it bursts, brother. Please, don’t take this lightly. As an economist, I can only tell you: do your research and you’ll see that shit’s about to go down in the global economy and especially in the housing markets of china, canada and possibly the US all over again...
Wait for a bubble to burst, then swoop in when the prices are low. Buy an entire city dirt cheap and let rural immigrants rent there super cheap. People move in, prices rise again, then sell your buildings for redevelopment before the 70 year lease is up. Repeat.
@@itsjonny1744 But you still own the building. It doesn't matter if the ground doesn't belong to you. If they wanna erase the building, the government still need to buy you the flat/building. That's why in some areas in big cities, there's still some old buildings, even if the owner of the land is the government, they can't replace it because people don't wanna sell their property
I live in Vancouver. Rich Chinese take their money out of the "mainland" as hard as they can. In my University, you see all sorts of Ferraris, Lambos, McLarens. From what I hear, all paid in cash. Any guess who drives them? Chinese students with an N sticker in the back. (N for novice driver in the process of getting a full license) I'm not hating, just facts here. An old average property that used to be perhaps 1m 10 years ago is now easily 6m, depending on the area can be 10+. Chinese come and buy it cash... I don't think anyone here wants to trace the money, they just welcome the investment. Nobody questions if its money laundering. The foreigner tax made the market slow down, yes, but it's on the rise again.
Hi, i live in Vancouver too. What data do you have to say that it's on the rise again ? Looking at this: www.rebgv.org/monthly-reports i don't see how it's on the rise again.
Lots of rich kids whose parents are either politically connected business people or just hard working (and also lucky) entrepreneurs who made their money during the rise of Chinese economy, get sent to schools in US, Canada, Australia, or New Zealand. They will take care of their family overseas investments, in order for their parents to diversify the family wealth. Eventually, they will graduate and perhaps get jobs and settle there. The while family will be able to have options to live in both China and the new country, with wealth in both places. This is the China Dream! It's like a "super-sized" American Dream...
JMR, nothing new. When I was in college over 11 years ago in the US, the rich Chinese students all had fancy cars. One had an H1, which is basically the civilian version of the military Hummer and hogged two parking spots for it.
This reminded me a lot of the "Brick bubble" in Spain. City councills rezoning rural land to urban, investors using real state as mean of safe investmen. It didnt' end well.
Hong Kong is very different, you shouldn’t really compare it to China’s housing crisis. HK’s government is funded by selling land, which allows it to keep low taxes, so it is very very different from China. Hong Kong is also not strongly influential China’s government for China to cause this affect there... at least not yet.
Just to further clarify, the government of HK gets this money directly, it’s not like a loan or borrowed money, and HK also does not actually have enough housing for its residents, where China has too much.
@Akin Khoo I'm not going to argue that HK has ever been a democracy. You are correct about that. But the "one country two systems " is very misleading and pissed off a lot of people in HK who thought they would be able to have more governing control. Under the one country two systems, HK was given the right to retain administrative and economic systems... but it only really got to keep the economic systems. Under the principle, HK could continue to have its own governmental system, legal, economic and financial affairs, including trade relations with foreign countries. But the CCP went against the agreement on allowing HK control over elections. This is why the Umbrella movement became a thing because the CCP made it impossible for HK to elect candidates unless the CCP gave them approval.
Wow, this is so well explained! I heard about ghost cities so many times, but never understood the principles behind. Your video explained it perfectly from end to end!
However, the real estate problem is still a hidden danger to China's economy. I'm Chinese. I can guarantee that. At the same time, our government is slow in this area.Those people with many houses continue to harvest the people who do not have a house.Although people ask for some taxes to this type of assets.But the Chinese government is only very slow in progression of this work.
@@Azknowledgethirsty no the bubble will pops, colapse is something that will happen when the info about china is broke fill, when? is hard to say but every year Without any correction make this bubble more apocalyptic
China's economy is growing like mad in the last decade and it's soft power is threatening the US and western nations in general. The only thing is that a lot of this GDP could vanish if the property bubble pops. And since the massive scale of this property bubble is multiplied by the massive scale of China's population, the world is actually running out sand as a result. Only sand from rivers and coasts can be used for building, desert sand can't, and china is building far faster than river produce.
There are lots of cities with houses owned by Chinese in Los Angeles. At one point they buying up all the houses with cash loans and pricing out single families and especially starter homes and now they are buying up as many duplexes, with cash, as they can. This Chinese lady i worked with bought two duplexes at 500,000 + cash weeks from each other. She worked as a masseuse, but she told me that she was taking nearly weekly trips to China to get the money.
Here we are two years later and Evergrande has defaulted on its repayments. The 💩 has hit the fan. Evergarande is (was) one of the biggest companies in the world.
I mean sweet fuck, I'm a good cook for a guy (i hope lol) and if anyone says "no you must own 3 houses first" I would quickly find myself without ever wanting to see them again xD
I mean I don't agree with that as well, even though being Chinese myself, but that's mostly because I'm raised here in the west. You really have to think about it from their perspective as well. When the male to female ratio is sooo imbalanced, girls have plenty of good options. Why would I choose you when I have 3 others competing to win me over, and they all have bought their houses? You may see this as superficial and very shallow, and how girls only date properties and not people, but think about it in our western social construct: why would I ever date this guy who doesn't have no degree, no job, no saving, when I have this coworker, that obviously has his job and shares the same goal as me? Because "no house no wife" is really harsh in our western society, but because it's the comparison to the rest of the people that matters, it is more like "no job no wife" for us, and safe to say, I myself as well as many girl friends I have, we don't want to date a dude that doesn't have a job and stays at home all day.
And even tho I regognize that shallow people exist, I shall issue them my well used saying for excusing oneself that I'm sure of someone in Asia or otherwhere has the name of.....Fuk You Den. (Not saying it is you, but please, don't be a shallow b*tch)
With construction quality not up to snuff, I'd be afraid to live in any of those hastily built condos. I can imagine surviving an earthquake in an old house in Japan but not in a newly built condo in China!
@Ecological Warrior no one is jealous of a continent that single handedly destroyed the middle east, Africa , and native tribes. No one is jealous of a continent that stood by at let millions of innocent Jews die . No one is jealous of a continent that doesn't have a good standing army and can easily be taken down by Russia or another German war since anti semitism is on the rise again . No one is jealous of a union that can be taken down by a few terrifs from the US you are a pawn and always will be Russia China and the US own you. know your place.
I am pleasantly surprised that this video has outlined much of the real challenges of Chinese real estate today. In case you are wondering how the life of the chinese is like, considering they save so much and spend so much on properties - actually most don't have a life, only survival. My highschool friends are working their asses off in Shanghai just to get by. That is why my family immigrated to Australia - you actually get to live a life.
@@souravbhatt4811 Chinese citizen here. China does have strong censorship, but it's mostly stuffs that directly threatens the CCP's rule (top ranking CCP officials' corruptions for example) that get censored. News or videos about economic problems are not shunned by the government and you can talk about it freely in China
Well done. As someone who has lived in China for 10 years you pretty much nailed every aspect of the housing issue in China. I also happen to be from Vancouver and the wealthy Chinese bought all kinds of houses and apartments which they dont even use. There is a building downtown that is completely owned by foreign investors but nobody lives inside despite every unit being sold. This screws over the locals cause now they cant even afford to rent a place let alone buy a place. Not to mention a lot of these wealthy Chinese nationals that buy up places abroad have really dirty money. For them its the best way to wash money. Canadians need to watch your video and be aware of whats going on. The Chinese dont play with the same rules as people from other countries and they will rig the game against them with their population and saved/dirty money.
Right, and now that prices have been inflated by all this Chinese money (dirty or not), as a local if you manage to buy a shitty place that will cost you your life savings, you take all the risk that the bubble explodes right after you bought :(
That burn on Florida’s flag around 3:22 is amazing. 😂 It truly is just hideous. I’m not super super fond of my home state, but at least Tennessee’s flag is pretty solid. But some states, man, come on, get some standards and priorities! I love that I didn’t know about this housing crisis, but that you looked into it and dissected it. I love that this channel ROUTINELY brings up stuff I don’t know about, but am instantly interested in (chronically curious, you might say!) and then immediately slathers on relief in the form of an explanation. I’m so happy this channel exists. 😭 If anyone has other channels they like (like Wendover Productions, Austin McConnell, SciShow, etc) please give me some ideas! I want to expand my horizons in the new year!
All the above are good and here are some of my personal favourites for informative channels. Visual politic is good as it goes into a lot of important obscure trendslike this video, everyday astronaut if you like space, coldfusion also does politics and science/tech stuff, Joe Scott (science), veritassium, and lastly just cause it's really cool imo is Isaac Arthur's channel I'd recommend it if you really want to blow your mind with a legit and awesome look at the future (I like it as it gives a sense of wonder about the future(it helped me open my mind of what we could use science to do and is a large part of why I'm becoming an engineer as I dream to one day help achieve those feats)) Hope that is what you were looking for :D
@Josef Stalin right, look at North Korea and what happened to the Soviet Union? They went broke and didn't want to starve so they dissolved also note that China isnt really communist at all it's more of a socialist maoist government so miss me with that bullshit. Chinese may be prosper but there's housing and etc crisis, doesn't mean all of them are happy. Communism would've worked if Lenin wouldve lived instead of Stalin. Don't blame the west or say they are butthurt cause both commies, socialists, and westerners are both doing sketchy shit
They are typical liberals. They wont show the Florida flag --notice label Too Ugly to show--but then they bend over backwards to apologiuse to the CHinese. How California Pathetic.
I am in Shenzhen, the housing price here like 90000 CNY / m^2 , and I make 130000 CNY / year income. Deduct living cost I can save like 60000 CNY / year if without any other income. (Thank god I keep that job) which means to buy 100 m^2 house in Shenzhen which costs 900 0000 CNY without mortgage. I will have to work 150 years without rest ! ! ! That’s insane, But it’s true I decided to quit my job and start purchasing higher education, I don’t really know what asset I should get now, sometimes it’s really frustrating and life have to keep going. 2019-2 in Shenzhen
@@gandhikumar2956 Not so easy, but as far as I know, the ratio wouldn't be at this ridiculously high level. I've never been abroad so I can't say for sure.
@@yuzhenwang8103 China has more people, but less mega cities; therefore people would fleeting into those cities and it is indeed the price would go up.
I feel its just wrong for governments to let the industry only develop in certain regions/concentrate itself too much.they should definitely force companies to develop even in other regions to keep a spread of the industry and keep housing/transportation to work in an orderly fashion.the time that commuters lose each day to reach their jobs and the pollution/extra costs that it brings certainly validate a strategy of spreading out.
I noticed this is published 3 years ago and now looking back it is the exact what happened in the China real estate market. Now the perfect storm finally arrived.
@@thomas4315 what ? its well known ghost banking hello .. it is a scam China's ghost cities were built with purpose and promise ... China's Manhattan sits pretty much empty on the outskirts .. when it burst omg though gonna pay , Mao Zedong, founder of the People's Republic of China, qualifies as the greatest mass murderer in world ... now pass me up the ladder better China troll department..
the claim ghost city had a watch man that kick them out. As I said China population is 1.2 billion 3 times as much as our. So 50 million is normal. So that the same as 16.6 million empty homes to our 320 million population.
You need empty homes for buyer. Not having build enough homes is a problem. Why don’t people have logic anymore. Everything you don’t understand is fake.
*The problem is the price, not the nice house.* Then again. It's better to have nice property in the country, than no housing at all. People will rent out their second flats. It's better than no flats for rent at all, which is a problem in popular cities.
12:29 "woodcravings" yeahim really craving some wood right now. Though I guess if theres so many weddings there might be many people craving wood there :D
郝文彬 I don’t completely disagree with you, however a deficit doesn’t necessarily mean anything and other factors play a bigger role in the fragility of an economy.
As an Indian, I admire Chinese economists and their buisness strategies. They may be called as "shrewd buisnessmen", bu they are really innovative. As an economics student, studying China is quite helpful. I wish India and China had good mutual friendship
Chinese analysts probably know the situation pretty well. But it's not that hard to come up with that analysis if you look at the data. Just go to china and you will understand the dilemma
@Jake I saw somewhere,the TLDR of the whole brexit stuff and I like this one the most "they want to enjoy the benefits of being an EU member while not bearing any responsibilities"
✳️ Hi there - This video is now 4 years old. I highly recommend you watch the updated 2021 version here: czcams.com/video/EgVXRtq5EIg/video.html
-Evan
I really enjoy your videos.
Cya
One more video before 2019 dawg
Videos are amazing, dude
Thanks Pollymater
I have traveled to Shanghai many times and know some locals. This video is very true. One man owns five condos. They are all empty and he never plans to rent them. I ask why? He says if he rents them then the value will drop. He says the price of the condos go up more than 10% per year and are great investments. They have no property tax. This whole thing is a house of cards.
Why would you rent condoms
@mountaingoat1003 dosent mean the country isnt communism
@@chozer1 it's authoritarian but it definitely isn't communism
@@rdablock its in the name CCP= chinese communist party, as long as they call themself communist they will be treated as such
@@chozer1 doesn't mean they are, they can wear red and sing Internationale until their throat burns out and it still doesn't change the fact that they're capitalist
Out of all the American cities to copy, they copied a city in Wyoming.
It’s a really important place in banker circles.
They needed someplace that didnt already have a China Town
what american city are you gonna copy and have it look like a cultural example? i imagine that place has some sort of interesting architecture or something.
@@adamvifrye2690 .... You're right. There is no better city.
Contrarians in yt comments always lmfao.
In Asia, cowboy country is exotically fascinating.
The sentence "china doesnt have enough people" is not one you hear everyday 🤔
Yeah lol. They have plenty of people but they have much more land and housing than the amount of people. I am thinking China can fit maybe 2 trillion people before the whole country becomes overcrowded.
@@chrisp7110 godamn.
he is talking about about one child policy. they will have more old people like japan which will depend on govt welfare.
And then Trump enters the chat and says
WE ARE FULL WE CANNOT HOUSE ANY MORE PEOPLE IN THE COUNTRY
when there is actually plenty of space and the USA is slightly a bit bigger than China
Dont get wrong. This channel is pro china. Very very subtle. And I am sure the narrator is Chinese origin. Subtle Chinese propaganda. Check all his China videos.
This is why I love Polymatter, I had an understanding of what's happening now, two years ago
Evergrande is going down.
@@victorcode2075 chinese stonks go down
Facts
So it's not free real estate :(
Nothing is free. Never was. Even in a communist society the laws of supply and demand rule.
@@ph11p3540 it's a joke not really to be taken seriously
:(
The PARTY owns everything.
As long as there's oil
It's creepy when I realize the resident area is almost empty, the buildings look fancy, but not a single human present. It was 2013 in middle of a trip.
Where exactly where you travelling around then ?
__ probably somewhere in the Milky Way galaxy
if you were traveling in China then one thing that must be taken into account is that China has a planned economy and most of those story's about entire city's being empty is just people that have no idea whats going on. the Chinese will build a city then build factories and all of the other things needed including jobs,stores,food/restaurants and all the rest then once everything is finished and ready they will start moving people out of the country side and into the city. this is what has happened with all of those city's that were written about and one would think that people would get it by now but most of the media love to hate on china so propaganda seems to be more important to them than the truth!! this is just a country developing under a planned economy that's all..
Chinese investors snatching up urban property in the US is very real, especially since they generally buy in cash, making them more attractive buyers than domestic ones. All my friends who have tried buying a condo here in DC have found themselves often getting pushed out by Chinese buyers.
I bet those chinese buyers don't even actually live there, they just see them as a commodity to sell for a higher price
@@lintang790 Of course, but it's not just chinese people. Even ultra wealthy indonesians do this. Where there is profit to be made, people will come. Just so happens Asia has been on an economic boom and there are a lot of people sitting on top small fortunes. Property is very good diversification anyway, it a no brainer for a lot.
@chinese commenter for those not hard learning truth, regardless who owns it the government gets property tax which is then spent on all the stuff the government does. That's fine. The issue is that it makes it harder for people who actually live in the city to buy property to house themselves and their families. And that's already really hard to do in my city (third most expensive city in the country)
@@lintang790 100%. I wouldn't care if the investors were actually living there, then they're just trying to find a place to live like everyone else and just have a cash advantage to do so. Sucks for the average person who'll likely need a mortgage to buy a house, but it's still fair if the buyer is living there.
Born and raised in Vancouver. It’s a huge problem here. Housing prices in greater Vancouver are insanely high and many are not justifiably used as homes but rather investments. An average condo in Vancouver is over $1,000,000 and actual houses are often worth well above 2 or 3 million dollars. Entirely caused by artificial investment demands rather than actual local necessity.
It was because some Chinese people went, bought buildings and left, causing the prices to skyrocket no?
China even makes knockoff cities? 🤣
Don't worry, they will make a knock off you
@@bohemiandoomer44 They don't knock off useless things.
Copy paste nation
O.o Everything the Chinese make is useless except for cheap labor.
@@Subscribebytch may be you should stop using Chinese things then. Let me know how it works for you Hahahaha
Now they're starting to buy up houses/condo's in other cities like Vancouver British Columbia, Canada & Seattle Wash. USA, leaving them empty too & creating a lack of housing for locals to buy/rent, forcing people to move further away from where they work. That's why in British Columbia they created a new law called "Empty Housing Tax" If you buy a home & don't live in it, leaving it empty you have to pay a tax that is 1% of the houses value every year. In 2019 the local government is planning to "triple" that percentage. "For Sale" signs have been going up lately...LOL !
Just to better understand. These people are buying houses and leaving them empty because they prefer that option than putting the money in a bank?
the video specifically mentions this but says that that tax is 20%.....
That's a WONDERFULLY WONDERFUL GREAT FANTASTIC Law.
@@SaintMartins TBF, that'd also prevent for example, Americans from buying Vacation homes, and it's documented that much of the investment money & property is being funneled though family members living in Vancouver.
It also discourages foreign developers from building anything, because every single house would have to be pre-sold or designated for rentals before construction starts.
@@Alumnikiid Technically land never loses value, it gain over time so it is an investment, just like putting your money in a bank.
I used to live in Beijing, China. While living there, I understood that Chinese cannot “own” real estate property - they can only lease it for 70 years. Perhaps there are different “ownership” arrangements?
It is not "ONLY lease for 70 years", it is "tbd" for the case after 70 years, because of the ongoing political/economic reformation process. Now the situation is getting clear. The "70 years' owner" can prolong the "lease contract" for another xx years with y% value money.
@@ErichJIANG I heard within the last week that the “70 year lease” policy is still in place. Regardless, there’s no ownership, just leasing.
@@jenniferlambert3886 Yes still leasing. That is essence of being a communist country. Land is owned by country 100%.
Btw, maybe it is the case in European rule based societies, but in some other countries, real estates are also based on leasing. To name a few, Israel 50%, India 40%, France 30%.
@chinese commenter for those not hard learning I am trying to understand your points, so might be some misunderstanding...
- Yes the country owns all the land, 100%. If you dont understand why the government compensates you for using the land/house, you should check various forms of 土地公有制
- You are basically using the land, not owning the land. If you own the land, you can do whatever you want to it. Now you need to report to government about every details if you want to farm or change it to residential purpose.
In the west we also lease. First from the bank and also from the government forever. That’s called a mortgage to the bank and taxes to the government. You never really own your land in the west either.
As a person living in China and as a person that has had students also discuss this issue, I'd say you've done a great job explaining the circumstances of the housing market.
i thought youtube was banned in china
@@kalm4757 It is banned, but you will notice many important Chinese leaders and companies have access to it as well as Twitter etc.
@@robertochina343 why is that ?
@@kalm4757 For the same reason the wealthiest Americans move their bank accounts off shore to avoid paying taxes....because they can and common people shouldn't.
@@robertochina343 so you are using CZcams right now means you are actually some big shot in China ??!!?!!
as a Chinese born Canadian, I have to say this is THE most unbiased and concise informative video about China i have watched so far. It tells every bit of truths and scheme about the real estate economy in China. right to the bulls eye.
zhuoran fu yet the video doesn’t include any sources. Hmm.
@@sonnyhuimingzhou418 Bottom of the description.
czcams.com/users/redirect?q=https%3A%2F%2Fpastebin.com%2FFPVU9SaG&event=video_description&redir_token=qwD8axfc5iSp9_-K7IqN_3p9SDh8MTU2ODAxMjQ5NEAxNTY3OTI2MDk0&v=f5SE47Xjx2Q
@@sonnyhuimingzhou418 Check the description
@@abbyalphonse499 there are most definitely some good sources there and while I 100% agree that ghost cities and expensive housing is a problem in China, some of the sources this guy relies on can be called biased towards Western foreign policy to say the least (he cites Foreign Policy for god’s sake).
@@ShehuStebe You're mistaken if you think there's one single cohesive western foreign policy, but do tell me of these unbiased sources you presumably know.
As Chinese, I wanna to say the main reason why Chinese people do a lot savings is we don't have developed social welfare systems like EU or US, we need money to prevent us from risks, like diseases or any kind of accidents,that is it.
Social welfare in US? HAH
Social welfare over here in the US is pretty shit though, maybe you should use Canada for comparison instead of the US.
not very informed on the social welfare systems in the u.s. are you? have you ever seen videos of the homeless on the streets of los angeles, or any other city in america. have you ever seen the dockets of bankruptcy courts across the country where medical bills have forced people to lose everything they have ever worked for? i would advise you, as well as the person that did this video, not to take as truth everything you have ever heard about another country. i think social welfare in china took a big step backward around 1980 or so when the health care system that began under Mao was not improved upon but discarded in favor of western style capitalistic systems. unfortunately i see china becoming like the u.s. in the future. a nation with a handful of obscenely wealthy individuals and millions of, billions in the case of china, poverty stricken people living from measly paycheck to measly paycheck.
Everyone in this thread is shitting on Us safety net. Trust me it’s much better than in china
Gilbert Salazar US call itself Free country, FOE.. and arrests journalists for leaking videos of soldiers killing inocents..... Establishment is not the government u elect for 4 yrs, establishment is about controlling people's mind. freedom, ideology etc r just matter of perspective.
Chinese government: If you build it they will come.
Chinese people: Nope.
Chinese Government: But we really have a lot of it! It's going to fall down in about 10 years though so please buy quickly.
Chinese People: *takes suitcase of cash to Canada*
@@sabemckullen6347 lmao i just laughed so hard
Also foreign investors: No thanks.
Not yet but we never know the future I already seen younger generations looking to leave their own countries because there is no future for the younger generations.
Kevin Smith I don’t really think that’s true, lots of Chinese international students are choosing study abroad bc the unbalanced and stressful education in China. Lots of people eventually will choose to go back to China. I would say only 20% of Chinese students want to stay.
Coming back to this with the events of the past few weeks has been...eye opening
Same
Chinese social credit
This is what happens when you have an economy based on leverage
Rip Evergrande…
They are empty because they are not real homes for those who badly need them, they are just speculation items, and speculative bubbles always end badly...
Speculation on homes could easily be put an end to through well placed (Without being overly exagerated) taxation.
@@AAhmou In Australia if you buy property and you have it financed actually not only you don't pay taxes but you get tax exemptions, so your brain-storming would be in vain here !!!
@@AAhmou Just allow cities to sell bonds or prohibit them from running companies
@@xZeroTheGreat
The Chinese system is based up on government owned companies. All the company owners have to be part of the government if they make enough money. It would mean a restructuring of China's governmental model.
This is not a system that just happen to exist this way. It all comes down to having all companies belong to the party, so that the leaders of the party becomes the largest business owners in the country (in a practical sense). The the chines government can and do change owners of these companies when they want to. It is often called being investigated for corruption charges.
@@AAhmou The reason why the bubble doesn't burst is because there are no end to it's growth.
“50 million empty homes”
England: *sweats nervously*
there are 200 million chinese abroad,
There's nearly 20 million empty houses in America and we have 1/3 the population.
@@noblesavage413 Many of those homes were once lived in (being out in rural areas and in currently in unlivable condition), they just are no longer lived in as more and more people move to cities. Meanwhile the ones in China have never had people living in them and it's debatable if they ever will, being located far away from desirable job markets. It's a huge difference to end up with 20 million empty, once occupied homes over many decades vs actively building 50 million empty, never touched ones in just one decade.
@@noblesavage413 and empty factories that are now filled in, um, China.
Yeah we are nervous xD
Appearance is everything to these people.
Exactly. The concept of "Face" is paramount to understanding why China does what it does. How others percieve you and avoiding blame is absolutely critical, especially to those in power.
@Honk if you love butts You are thinking of Japan.
ironically this is what leads to the oppisite for them
That sounds more like the US as well
Like me in Minecraft I build a lot of houses and I have no friends 😓😭
Jose David 1507 Just Go and get yourself some villagers to live there. It’s almost like real friends! 🤷🏽♂️
Jose David 1507 This makes me realise that my city is a ghost town 🤧
Same! I just build as many Stalinist apartments as I can, all of which about 15 floors.
Lol thanks love ya
Build a frick chamber so it's not so lonely anymore lol
“All those loans won’t magically disappear”
Idk, China magically disappears loans somewhat often tbh
what do you mean?
@@ab-ww5jc China has forgiven the debt of the poorest countries it lent to numerous times.
@@darrishawks6033 of course after the the countries liquidated their sovereignty.
@@Swagalious689 hahaha, anything is possible when you lie
That's super not true, liar.
@@Swagalious689 Name me which country "liquidated [its] sovereignty" for Chinese debt forgiveness.
That's not debt forgiveness. That would be "seizing collateral"
Exchange student: I only date people who own their own house.
Me: People here don't tend to do that (at least in their 20s)
Her: *surprised Pikachu*
She doesnt date people,she dates properties
Yes, you are a Chinese gold digger.
Henning! hou ju bu jian girl! That's why you dumped me? I never did buy a house, instead I invested in Apple, Google and Amazon, made lots more money than anybody ever made on a house. Please don't try to get in touch, my wife wouldn't like it. Best of luck to you.
Henning Gu XD
The values promoted by Chinese society: men must have a car and a house, which is a prerequisite for women to marry him.
Everyone watching this during the Evergrande crisis…
Last time a country had to balance impossible factors while still wanting to grow, it started WW2.
Pretty sure it had something to do with the states not trading goods.... so pretty sure again it was America that's started the war
Bala Fulama America didn’t invade Poland
this time another country already started "trade war", a prologue to ww3.
janis vogel how???
@@Bobelponge123 Exactly
Now I know why my mom owns 5 houses in China...
@@freekmorrenhof3644 fuck you
Tell her to buy a house in hong kong
+@@grandson_lok_zai Good advice.
Funny that..cause you can only lease homes in China. Therefore it cannot be handed down to family.
@@MrsHeath62 that’s not true, you can definitely pass down the ownership. Singapore has a similar policy.
My whole life revolve around paying off my mortgages. Yet strangely, I felt happy. I know this sounds nuts. To paraphrase a line from the Movie Munich " Some day you can have a kitchen like this, it is costly but home always is."
Property tax would be insane! Just suddenly expecting millions of people to open their wallets if they want to keep their empty properties would just burst the bubble immediately.
Problem is, can they really sell those properties for the amount of money they expected? Property tax means everyone wants to sell their properties out and doesn't want to buy them.
Polymatter: Why 50 Million Homes Are Empty?
Me: Probably because nobody lives in them.
Some people care about details. Typically because they are conscientious.
@@web2yt488 It was just a joke web2yt. I was being silly.
@@JEOGRAPHYSongs r/whoosh
@@redvoltage2445 r/whoosh
Yes, but why is nobody living in them?
Yet in the US they intentionally dont build enough housing to keep prices up
GeneralSol I don’t think that’s what he means. I’m guessing he means is the U.S intentionally REGULATES housing preventing developers to build housing to KEEP UP with the market. Like the entire state of California. They intentionally regulate and zone land so developers can’t build to keep up with the demand of the market.
California is a case study in government bureaucracy and local holdouts hamstringing and blocking expanding the stock of housing to meet high demand.
There is actually waaay more houses than people in the US and most of the world. This is because many people buy 2nd or 3rd homes. Essentially if your unable to buy a house due to market conditions you can blame the rich who use them as an "investment"...
@@lilgangstacj Have you ever been to Canada? They even keep all the land off the market driving home prices through the roof even without the help of the Chinese.
@@donovan4105 the us regulates many markets like that, if not all.
Actually this is a really accurate and non-biased video, which is rare. Well done!
What is "non-biased" about "this flag too ugly"?! Crazy Progressives trying to erase history again.
The flag is downright hideous to look at and far too complex to draw by the average joe
Konrad Dawid Wojsław I don’t think you understand the context in which this is an entirely different society.
Everyone surely realises that the Cali/ UK/ NY and Canadian housing crisis is all linked to this.
the Chinese was actually the cause of all real estate bubbles.
Very informational and interesting video. You hit the nail right on the head. Now almost 4 years later, the housing bubbles already popped and keeps bursting :(
I have a friend in China, who is a teachers assistant and he owns three homes. Eastern China is is considerably more expensive than West. That's why the salary vs price per sq ft doesn't add up, because the disparity is huge. He told me you can buy small houses for a few thousand dollars in some areas (which is what he did).
Part of the story I must say. The reason why an increasing number of house transaction are Chinese people buying their second/third house is the imbalanced distribution of wealth within the country. The amount of transaction of second/third house does not simply imply that the number of Chinese people who can afford a second/third house increases. The truth is an extremely small fraction are possessing quite a huge share of the cake. At least 60% household are still struggling to afford the first house for their next generation and they account for only 1/3 of the property transactions. That small fraction is a well organized interest group. There exists interest conflict in the process of pushing down the price of houses to an affordable level. Because this group possess a large amount of the house stock, any decrease of prices would lead to a plummet of their wealth. And that's why they became the barrier between the macro policy from the central gov and the actual implement of local gov. Btw, central gov is well informed of such situation but they still have to keep an eye closed on this issue because they rely on local gov somehow on implementing various policies other than this.
Something similar is happening in India as well though not on a similar scale. Housing projects are cropping up everywhere like crazy and a small section of extremely rich people are buying them up. Most workers living in our cities can even dream of buying their own apartments.
America: Hey, that's not very cash money of you.
@R J Here's a new terminology:State capitalism
That's what happens under a closet dictator
@@y-3084 except its not the state buying up all these properties is it? The same thing is happening in capitalist countries all over the world.
Lol yes the Florida flag would have definitely clashed in a nicely designed and nice animated video.
ARTiculations what’s the problem with Florida’s flag?
@@yelectric1893 it's not pretty
Yelectric it’s hideous
Is it cuase of the Confederate stripes?
Eric Christian lol no it’s just that it breaks many basic rules of flag design - like a good flag should be simple, use few colours, and be easy for a kid to draw. To be symbolic is usually to be simple. And Florida’s flag is just too messy and complicated. But maybe some people still like it. It’s nothing against Florida, I just think they deserve a nicer looking flag.
This was prophetic. I remember watching this about a year ago and paying attention to the signs this video pointed out.
We're now seeing it happen. Frighteningly remarkable.
While I agree with your comment, I have to say that this wasn't the first time anyone called this out. It's been predicted for more than a decade. The only thing that wasn't accurately predicted by anyone was the "when" this was going to happen.
been a year, where's the fallout? I'm so tired of China collapse enthusiasts
Soooooo this sounds like the most epic housing bubble in history
@Al Cubz Don't you realize, bubbles are ment to burst its not when its how. I seriously hope it doesn't because China is a major economic player, china's fall will trigger global economic crash of an unprecedented scale. Nope not good but it can't continue forever.
@@kundanchaudhari3951 we're already headed for an economic collapse, it's inevitable. The question isn't if but rather when
@@kundanchaudhari3951 Their crash would actually not affect other countries very much. The most affected countries would be North Korea, and the countries in Africa China is investing in. China relies on the big consumers like the U.S.A. and Europe, alot more than those consumer countries rely on China.
study Japan's bubble, they havent recovered since.
@@myiLLmind Sucks to suck. Doesnt affect us.
Friend : where are you
Me: china
Friend: which city
Me: Austria
“50 million empty homes” California: *sweats nervously*
Edit: Guys. This comment is just supposed to be a funny joke. Don't get into the politics of it.
We need homes in CA sooooo bad.
@@Darrell9000 ikr and all these people from other states keep coming on top of everyone from everywhere coming in
China could probably solve California's housing crisis in about 2 years.
@@MrBeaux lmao no China is sending all of them here due to the corruption they have over there
@ME Trust me Cali is worse like you have no clue, they compared to Cali for a reason. A 3 bedroom house in a city near Compton will run you 400k
Hey. I love your channel. Just so you know: I almost never watch your videos, but instead use them as podcasts. So I like to learn but not necessarily visualy. Much love!
bought my 4 bedroom apt in Shanghai in 1999 for 600k usd. now going for 2.2 millions usd. don't think china is cheap, that'll be your first mistake
hongpingmike are you going to sell it
Sell it before it bursts, brother. Please, don’t take this lightly. As an economist, I can only tell you: do your research and you’ll see that shit’s about to go down in the global economy and especially in the housing markets of china, canada and possibly the US all over again...
Sell it and go Japan
Shanghai =/= the rest of China. There are many cheap areas in China.
What do you think will happen to the value when the land get's closer to expiration.
That's it. I'm buying an entire abandoned city in China.
They are buying your house first.
You will be leasing it for 70 years, not buying it
Wait for a bubble to burst, then swoop in when the prices are low. Buy an entire city dirt cheap and let rural immigrants rent there super cheap. People move in, prices rise again, then sell your buildings for redevelopment before the 70 year lease is up. Repeat.
@@itsjonny1744 But you still own the building. It doesn't matter if the ground doesn't belong to you. If they wanna erase the building, the government still need to buy you the flat/building. That's why in some areas in big cities, there's still some old buildings, even if the owner of the land is the government, they can't replace it because people don't wanna sell their property
You can't afford it.....
I live in Vancouver. Rich Chinese take their money out of the "mainland" as hard as they can. In my University, you see all sorts of Ferraris, Lambos, McLarens. From what I hear, all paid in cash. Any guess who drives them? Chinese students with an N sticker in the back. (N for novice driver in the process of getting a full license) I'm not hating, just facts here. An old average property that used to be perhaps 1m 10 years ago is now easily 6m, depending on the area can be 10+. Chinese come and buy it cash... I don't think anyone here wants to trace the money, they just welcome the investment. Nobody questions if its money laundering. The foreigner tax made the market slow down, yes, but it's on the rise again.
Hi, i live in Vancouver too. What data do you have to say that it's on the rise again ? Looking at this: www.rebgv.org/monthly-reports i don't see how it's on the rise again.
I'm sorry I missed out to move there but that's life for me. I wanted to, starting about 10 years ago. Hope you get a profit. Not if a renter, sorry.
Lots of rich kids whose parents are either politically connected business people or just hard working (and also lucky) entrepreneurs who made their money during the rise of Chinese economy, get sent to schools in US, Canada, Australia, or New Zealand. They will take care of their family overseas investments, in order for their parents to diversify the family wealth. Eventually, they will graduate and perhaps get jobs and settle there. The while family will be able to have options to live in both China and the new country, with wealth in both places. This is the China Dream! It's like a "super-sized" American Dream...
JMR, nothing new. When I was in college over 11 years ago in the US, the rich Chinese students all had fancy cars. One had an H1, which is basically the civilian version of the military Hummer and hogged two parking spots for it.
@@Birdylockso well, rich families not just from america... 😅
Evergrande is going bankrupt rn. This will make domino effect on their economy.
I like this combination of animation and real-life cut-scenes. Way to go!
This reminded me a lot of the "Brick bubble" in Spain. City councills rezoning rural land to urban, investors using real state as mean of safe investmen. It didnt' end well.
Bricks with Chinese characteristics
Japan in 80s
Hong Kong is very different, you shouldn’t really compare it to China’s housing crisis. HK’s government is funded by selling land, which allows it to keep low taxes, so it is very very different from China. Hong Kong is also not strongly influential China’s government for China to cause this affect there... at least not yet.
Just to further clarify, the government of HK gets this money directly, it’s not like a loan or borrowed money, and HK also does not actually have enough housing for its residents, where China has too much.
yeah but houses in hk still expensive af lol
Not entirely true. Chinese stacked HK government with CCP loyalists in recent elections, kinda like what they just did in Taiwan.
@Akin Khoo You have not been following what happened with the recent HK government selections.
@Akin Khoo I'm not going to argue that HK has ever been a democracy. You are correct about that. But the "one country two systems " is very misleading and pissed off a lot of people in HK who thought they would be able to have more governing control. Under the one country two systems, HK was given the right to retain administrative and economic systems... but it only really got to keep the economic systems. Under the principle, HK could continue to have its own governmental system, legal, economic and financial affairs, including trade relations with foreign countries. But the CCP went against the agreement on allowing HK control over elections. This is why the Umbrella movement became a thing because the CCP made it impossible for HK to elect candidates unless the CCP gave them approval.
So they are basically buying houses to get married 😂😂😂
No one would marry you if you don’t even own a house
Its not a crisis when homes are empty. its a crisis when there is not enough homes
Wow, this is so well explained! I heard about ghost cities so many times, but never understood the principles behind. Your video explained it perfectly from end to end!
Almost Everything in the world today is a Ponzi Scheme.
Knowing when to sell and take your profits is the difference between winners and losers.
or you just start shorting as long as the bubble gets huge
This video aged well.
However, the real estate problem is still a hidden danger to China's economy. I'm Chinese. I can guarantee that.
At the same time, our government is slow in this area.Those people with many houses continue to harvest the people who do not have a house.Although people ask for some taxes to this type of assets.But the Chinese government is only very slow in progression of this work.
It will sure be fun when this bubble pops
It won't, the bubble is real but it'll be filled with millions of farmers
@@Azknowledgethirsty no the bubble will pops, colapse is something that will happen when the info about china is broke fill, when? is hard to say but every year
Without any correction make this bubble more apocalyptic
Has not China learnt from the housing bubble of the USA? I am here and have seen it.
Let's just hope it doesn't affect the US too much.
China's economy is growing like mad in the last decade and it's soft power is threatening the US and western nations in general. The only thing is that a lot of this GDP could vanish if the property bubble pops.
And since the massive scale of this property bubble is multiplied by the massive scale of China's population, the world is actually running out sand as a result. Only sand from rivers and coasts can be used for building, desert sand can't, and china is building far faster than river produce.
There are lots of cities with houses owned by Chinese in Los Angeles. At one point they buying up all the houses with cash loans and pricing out single families and especially starter homes and now they are buying up as many duplexes, with cash, as they can. This Chinese lady i worked with bought two duplexes at 500,000 + cash weeks from each other. She worked as a masseuse, but she told me that she was taking nearly weekly trips to China to get the money.
I've finally learnt how to decipher when you segue into the sponsor. There's a tell in your voice.
Here we are two years later and Evergrande has defaulted on its repayments.
The 💩 has hit the fan. Evergarande is (was) one of the biggest companies in the world.
I’d just warn those Chinese homies to rethink marriage.
I mean sweet fuck, I'm a good cook for a guy (i hope lol) and if anyone says "no you must own 3 houses first" I would quickly find myself without ever wanting to see them again xD
I mean I don't agree with that as well, even though being Chinese myself, but that's mostly because I'm raised here in the west. You really have to think about it from their perspective as well. When the male to female ratio is sooo imbalanced, girls have plenty of good options. Why would I choose you when I have 3 others competing to win me over, and they all have bought their houses? You may see this as superficial and very shallow, and how girls only date properties and not people, but think about it in our western social construct: why would I ever date this guy who doesn't have no degree, no job, no saving, when I have this coworker, that obviously has his job and shares the same goal as me? Because "no house no wife" is really harsh in our western society, but because it's the comparison to the rest of the people that matters, it is more like "no job no wife" for us, and safe to say, I myself as well as many girl friends I have, we don't want to date a dude that doesn't have a job and stays at home all day.
Stay at home dad's don't exist in China do they?
And even tho I regognize that shallow people exist, I shall issue them my well used saying for excusing oneself that I'm sure of someone in Asia or otherwhere has the name of.....Fuk You Den. (Not saying it is you, but please, don't be a shallow b*tch)
And we have feminism from the left to convince us to spend even more.
With construction quality not up to snuff, I'd be afraid to live in any of those hastily built condos. I can imagine surviving an earthquake in an old house in Japan but not in a newly built condo in China!
Don't have money to buy say so la.why go an bluff.🤣🤣🤣🤣
That's what I'd be concerned about!
@@serenachen9385 So fragile lmao
@Ecological Warrior Yup, you sound like a European. You guys get your propaganda fill.
@Ecological Warrior no one is jealous of a continent that single handedly destroyed the middle east, Africa , and native tribes. No one is jealous of a continent that stood by at let millions of innocent Jews die . No one is jealous of a continent that doesn't have a good standing army and can easily be taken down by Russia or another German war since anti semitism is on the rise again . No one is jealous of a union that can be taken down by a few terrifs from the US you are a pawn and always will be Russia China and the US own you. know your place.
3:15
"This flag TOO UGLY"
XD
LOL WTF
I agree, badly in need of a new design; Russia did quickly!
Rotfl
@@jossdionne9810 soviet flag was sexy man.
Compared to many other state flags with the plain ass blue or green & seal, Florida is given
I am pleasantly surprised that this video has outlined much of the real challenges of Chinese real estate today.
In case you are wondering how the life of the chinese is like, considering they save so much and spend so much on properties - actually most don't have a life, only survival. My highschool friends are working their asses off in Shanghai just to get by.
That is why my family immigrated to Australia - you actually get to live a life.
Chinese citizen here. This is SO true!
I donot think that your country government is showing this type of videos in china. So how did you saw it.
Honesty appreciated 👍 What do you think are the steps Chinese govt. in Beijing is taking to solve the Housing bubble crisis ?
@@souravbhatt4811 well i travel a lot
@@souravbhatt4811 China does show it. It's purely economical
@@souravbhatt4811 Chinese citizen here. China does have strong censorship, but it's mostly stuffs that directly threatens the CCP's rule (top ranking CCP officials' corruptions for example) that get censored. News or videos about economic problems are not shunned by the government and you can talk about it freely in China
Well done. As someone who has lived in China for 10 years you pretty much nailed every aspect of the housing issue in China. I also happen to be from Vancouver and the wealthy Chinese bought all kinds of houses and apartments which they dont even use. There is a building downtown that is completely owned by foreign investors but nobody lives inside despite every unit being sold. This screws over the locals cause now they cant even afford to rent a place let alone buy a place. Not to mention a lot of these wealthy Chinese nationals that buy up places abroad have really dirty money. For them its the best way to wash money. Canadians need to watch your video and be aware of whats going on. The Chinese dont play with the same rules as people from other countries and they will rig the game against them with their population and saved/dirty money.
Right, and now that prices have been inflated by all this Chinese money (dirty or not), as a local if you manage to buy a shitty place that will cost you your life savings, you take all the risk that the bubble explodes right after you bought :(
Burn them all down.
*launder
As a Floridian, thems fightin words!
Why I find this kind of video much more entertaining than most comedy videos, songs and movies
Because you crave real information as opposed to pop culture
I always wondered about this, thanks for the video!
FLORIDA: THIS FLAG IS TOO UGLY!!😂😂😂😂😂
Nah poly matter is to lazy to vectorize it
Does Florida flag contain Confederate symbols?
@@alantan9863 no lol
Mississippi flag has a confederate flag symbol.
@@1985toyotacamry Yes. The red x. same thing as Alabama. Mississippi has confederate symbols too
That's a great 12 minutes ad! Loved the transition at the end, brilliant.
Ship those houses to California !!!
That burn on Florida’s flag around 3:22 is amazing. 😂 It truly is just hideous. I’m not super super fond of my home state, but at least Tennessee’s flag is pretty solid. But some states, man, come on, get some standards and priorities!
I love that I didn’t know about this housing crisis, but that you looked into it and dissected it. I love that this channel ROUTINELY brings up stuff I don’t know about, but am instantly interested in (chronically curious, you might say!) and then immediately slathers on relief in the form of an explanation. I’m so happy this channel exists. 😭
If anyone has other channels they like (like Wendover Productions, Austin McConnell, SciShow, etc) please give me some ideas! I want to expand my horizons in the new year!
Amara Jordan try CrashCourse and Kurzgesagt.
Ted Ed, Kurzgesagt, asapscience, minute physics, minute earth, crash course, and it’s okay to be smart are all channels I would highly recommend.
All the above are good and here are some of my personal favourites for informative channels.
Visual politic is good as it goes into a lot of important obscure trendslike this video, everyday astronaut if you like space, coldfusion also does politics and science/tech stuff, Joe Scott (science), veritassium, and lastly just cause it's really cool imo is Isaac Arthur's channel I'd recommend it if you really want to blow your mind with a legit and awesome look at the future (I like it as it gives a sense of wonder about the future(it helped me open my mind of what we could use science to do and is a large part of why I'm becoming an engineer as I dream to one day help achieve those feats))
Hope that is what you were looking for :D
Dominican republic mentioned! yey. i can finally die happy.
When I read the title, I thought Polymatter is collaborating with China Uncensored
omg same
This is more true than china uncensored
@@opnubbycole2669 china uncensored is basically falungong propaganda. Wouldnt trust them at all
@Josef Stalin right, look at North Korea and what happened to the Soviet Union? They went broke and didn't want to starve so they dissolved also note that China isnt really communist at all it's more of a socialist maoist government so miss me with that bullshit. Chinese may be prosper but there's housing and etc crisis, doesn't mean all of them are happy. Communism would've worked if Lenin wouldve lived instead of Stalin. Don't blame the west or say they are butthurt cause both commies, socialists, and westerners are both doing sketchy shit
They are typical liberals. They wont show the Florida flag --notice label Too Ugly to show--but then they bend over backwards to apologiuse to the CHinese. How California Pathetic.
How eerie precise PolyMatter predicted the future and now China's Reckoning is realized.
*CCP has joined the chat*
@I'm
*Kishore Singh joined the chat*
*I'm was reported by Kishore Singh*
@I'm Pakistan has joined the chat
India has started a war
Normie
@@angrypepe7615
*Pakistani army left the chat*
*CCP sees the video*
*CCP has banned the chart*
I am in Shenzhen, the housing price here like 90000 CNY / m^2 , and I make 130000 CNY / year income. Deduct living cost I can save like 60000 CNY / year if without any other income. (Thank god I keep that job) which means to buy 100 m^2 house in Shenzhen which costs 900 0000 CNY without mortgage. I will have to work 150 years without rest ! ! ! That’s insane, But it’s true I decided to quit my job and start purchasing higher education, I don’t really know what asset I should get now, sometimes it’s really frustrating and life have to keep going. 2019-2 in Shenzhen
Then you think it's easy for an American to buy an apartment in New York or a Japanese to purchase a house in Tokyo?
@@gandhikumar2956 Not so easy, but as far as I know, the ratio wouldn't be at this ridiculously high level. I've never been abroad so I can't say for sure.
@@yuzhenwang8103 China has more people, but less mega cities; therefore people would fleeting into those cities and it is indeed the price would go up.
I feel its just wrong for governments to let the industry only develop in certain regions/concentrate itself too much.they should definitely force companies to develop even in other regions to keep a spread of the industry and keep housing/transportation to work in an orderly fashion.the time that commuters lose each day to reach their jobs and the pollution/extra costs that it brings certainly validate a strategy of spreading out.
@@tonysbooth9179 Yeah, that's partially true and another important factor is this is one of the primary incomes of the Single Party of China
Sadly, that's what happening in China now. And even throughout Chinese history, land problem is always the trigger of civil wars.
I noticed this is published 3 years ago and now looking back it is the exact what happened in the China real estate market. Now the perfect storm finally arrived.
Called ghost banking ... There are whole cites sitting empty .
Wrong , look at the dat of the video 2013- 2014 there were build long before rail got build.now rail are build to go there, called planning.
@@thomas4315 what ? its well known ghost banking hello .. it is a scam
China's ghost cities were built with purpose and promise ... China's Manhattan sits pretty much empty on the outskirts .. when it burst omg though gonna pay , Mao Zedong, founder of the People's Republic of China, qualifies as the greatest mass murderer in world ... now pass me up the ladder better China troll department..
Go look at the date the the ghost video. It 2013-2014. That that 7 year old. And look at that video link of a tiny city.
the claim ghost city had a watch man that kick them out. As I said China population is 1.2 billion 3 times as much as our. So 50 million is normal. So that the same as 16.6 million empty homes
to our 320 million population.
You need empty homes for buyer. Not having build enough homes is a problem. Why don’t people have logic anymore. Everything you don’t understand is fake.
70% is all of UKs wealth is in housing too, all £8.8 Trillion of it. What's the percentage in the US for comparison?
*The problem is the price, not the nice house.*
Then again. It's better to have nice property in the country, than no housing at all.
People will rent out their second flats. It's better than no flats for rent at all, which is a problem in popular cities.
Let me introduce you to the ‘middle income trap’ and ‘asset bubbles’. It’s going to be carnage.
Me: reads the title
Also me : because no people are living in the empty houses
that's why its empty
12:29 "woodcravings" yeahim really craving some wood right now. Though I guess if theres so many weddings there might be many people craving wood there :D
Wow that’s a ticking time bomb.
Looking at US deficit makes me much more nervous, seriously.
郝文彬 I don’t completely disagree with you, however a deficit doesn’t necessarily mean anything and other factors play a bigger role in the fragility of an economy.
Instead of leaving money in the bank they invest in apartments.
THAT simple.
Thank you for that concise explanation...
Land always has value, unlike fiat currency which can be reduced to zero value overnight.
@@rhianimal19 Except they dont own the land. They lease it for 70 years. Afterwards all their money is gone. Completely lost.
@@godmode8687 If you think that was all their $$$, I have a bridge I can sell you.
@@rhianimal19 what do you even mean with that??
Personally I believe that the high housing prices here are a direct result of a series of government intervention policies that cuts down supply.
Ironically, renting is still rather cheap.
I live in Vancouver, and I now understand our housing crisis.
Dude, this is so well made. Thank you for such a good video!
Substitute the word house with stock and you got yourself a video about the Great Depression!
As an Indian, I admire Chinese economists and their buisness strategies. They may be called as "shrewd buisnessmen", bu they are really innovative. As an economics student, studying China is quite helpful. I wish India and China had good mutual friendship
This didn't age well in these times....
They leave empty houses all over Vancouver bc as well
hi
40 percent savings wtf thats impressive
Anybody else see the sign in the top left for "WOODCRAVINGS" at 0:40? 😂
How did you know all this??? You understand this issue better than most Chinese analysts
Steven Z I am Chinese I didn’t even know , my parents they have 6 property in Wenzhou but the government give us for change for our old house
Chinese analysts probably know the situation pretty well. But it's not that hard to come up with that analysis if you look at the data. Just go to china and you will understand the dilemma
+Steven Z. living in the free world and having access to uncensored information helps.
@@killman369547 and still live in poor 😂
This video is totally bullshit
Can you include sources for these numbers? That would be good
fake state Capitalism
All numbers fudged
It's in the description you busted walnut.
BTW China no longer has the one child law, parts of this video makes it sound as if they do still have that law, and they clearly redacted it in 2015.
heard they have 3 child law now
But it still has impact on it because of it everyone sees 1 child as a norm and the difference between men and women wont be change in 5 years
@@shams2397 No, it's 4
As a native Floridian I laughed at our "flag." 😆
Yep kinda plain at least it's better than the original made by a confederate soilder
@@UltraBot49er oof yes 😣
demonitized for using peachy©
I would not even characterize this whole thing as "a house of cards" but more like a house of ripoffs...
exactly the same as the us, a house of cards is an understatement
everything is a scam at least in the us
I think you should do a video on the British housing crisis...
Theodore Griffiths is such a British name lol
Yes this. Though it is really a western housing crisis as the same is happening in many comparable economies.
There's a Adam Curtis documentary on that.
Damn. Is there a housing crisis everywhere?
@Jake I saw somewhere,the TLDR of the whole brexit stuff and I like this one the most
"they want to enjoy the benefits of being an EU member while not bearing any responsibilities"
"Milton Friedman has a lot to answer for"
-Jeremy Grantham
9:30