How China's property bubble burst
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- čas přidán 28. 02. 2024
- Desperate property developers in China have resorted to gifts like new cars, free parking spaces, phones and other consumer goods to attract homebuyers and boost flagging sales.
These incentives are just the tip of the iceberg in a crisis involving hundreds of billions of dollars in home builder debt, trillions in local government debt and at least a billion empty apartments.
But it wasn't always the case. Since China's economic liberalization in the 1970s and housing reforms in the late 1980s, locals have flocked to properties as the investment vehicle of choice over alternatives such as the stock market.
The property and construction boom helped fuel China's - and the world's - economic growth for 30 years. By some estimates, property in China was worth $60 trillion at its peak, making it the biggest asset class in the world.
Developers like Evergrande and Country Garden got extremely rich in the process.
As property values soared and Chinese households piled on more debt, Beijing attempted to cool its housing market and rein in risky business behavior. Spooked, Chinese consumers soured on property purchases.
But the country's property crisis has deeper roots than speculation and uncontrollable debt. Watch the video to find out how China's property bubble burst.
#CNBC #China #Evergrande #Property
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Nice try. The public have been requesting this topic for over ten years!
As one who has worked for a decade at one of China's leading real estate companies, I can confirm that for every $100 spent on housing prices by consumers, at least 70 to 80 are taken away by the government in the form of land concession fees and various taxes during the transaction process. This is essentially a form of rather covert heavy taxation. If you don't buy a house, you won't be able to enjoy basic public services in your city of residence, including education for your children, medical services for yourself, etc. Essentially, if you don't buy a house, you're treated as an "illegal immigrant." However, after taking such a high proportion of residents' income away, has the government used it efficiently? In China, where there is no reasonable supervision mechanism in place, this remains a big question mark.
So a person who lives on rent can't have child registered at a school?
“no reasonable supervision” is essentially corruption
He exaggerate the factor to catch eyes. Honestly, a out of towner who lives on rent can have their children study in nearby school, the only disadvabtage is their child is difficult to register in the 1st class elementary / junior high school, but be enrolled into an inferior one...that's the only advange of so called “School district house" in China.@@_psychopath_5623
And don't forget the ~20% that is baked in for the corruption.
that a bunch of malarkey. how then can it grow this big with some buyers buying three or four homes. so you are wrong.
As a Chinese from the mainland, I have to say that China's system is a caste system. Rich Shanghainese and Beijingers immigrate and buy houses all over the world. People from Gansu and Sichuan who have no money are slowly dying in China. People in the government system can not work at all through connections, but they can still get wages. People outside the system get up at 4 a.m. and are busy, but still find it difficult to eat. The Chinese civilization and caste system should end.
huh?
Gold, Car,….we’re offered not to affect the official sales price to hide the decline in prices.
They have extra apartment unlike the west. Homelessness is out of control
They do have homes but a lot of them are either undesirable or unaffordable, so what is the difference?
@@notme943 For the general public it is easier to hide extent of the problem by government saying that real estate just fell x% vs xx%.
homes should not be used as investments for high profits. essential to live items should be regulated so its accessible to all
Yeah, they are called trees.
Actually, i’ve been thinking that city planners and local governments should be more creative with terms of subsidized housing and manual labor. I’m seeing less and less interest in engineering, city works and construction from around New Jersey. The immigrants based on New York would be cheap and willing labor to help facilitate new housing projects and help them have proper documentation. Two birds with one stone.
That's the issue when your government manipulates its currency, forbids you from investing over seas and has a potemkin stock exchange. People invested into the only asset that could outpace inflation.
Dont forget, the UK is in recession. Japan is in recession. They are the 3rd and 1st US bondholders on earth. China is the 2nd. When more and more people in the world boycott the USA allies' products as a response to Israel, there is a possibility the UK and Japan's recession will get worse. At that time, the UK and Japan may sale their USA bonds. If that has happened, China will follow suit.
When hospitals and prescription drugs are affordable I will support your desire for an affordable home. Especially with cities making property taxes a major source of tax income and property insurance unaffordable but required when you have a mortgage.
China’s housing market is more likely to be a gambling house. Before the bubble bursting, the way assessing people whether they were rich enough was the amount of apartments they had. The government manipulated the property price increasing from 2015 to 2020 dramatically, which was called “rise in price and disposed of inventory”.
Many of these apartments are incomplete and not livable. Now, they will never be completed.
But At lease homeless all has shelter that's a plus
@@matthewwu4873你认真的？中国城市不允许流浪汉，都被打回老家去了😅
The culture in China and also places like Singapore and HK are highly revolved around property as a commodity. It's such a shame because there is a lot of poverty in China too and many people need homes. Every country needs to stop using shelter as a means to riches. The Boomer and Gen X generation have been particularly guilty of spreading this disease, including in the UK, where the property market is absolutely diabolical, leaving the younger generation with poor housing with rocket sky prices. This needs to stop.
Exactly ! Ya, just as how housing are sOoOoOo unaffordable in the US, EU, Australia, Japan, Korea and more !
Thank goodness for the Chinese government for popping the bubble.
This is exactly what President Xi said. Property isn't for speculation. It's for housing people.
Same goes with the US. Our housing is scary similar to the 2008 market crash
@@Airwr3ckhuh? How, in what sense is it similar?
@@Airwr3ck Whatcha talkin bout Willis!
fantastic summary. many news outlets negate the fact that local goverment stuff like roads hospitals and such was funded by selling property. Both building and maintenance.
Works the same all around the world, developer contributions to build roads etc
A BILLION empty apartments?
Crazy!
yes, they are that crazy.
Point being that this girl has no clue about numbers and reality...
@@georges_c_brain Billions lol 😂 😂
Wasteful regime just like overfishing the ocean
The bubble finally burst...just 10 years late
I think collecting property tax, establish personal bankruptcy law, a credit system and buyer pays when the building is complete would be the best way to get out of this mess. There will be pain but it will getting the market stabilized over the time.
Great reporting CNBC! 👏🏼👏🏼🙌🏼👌🏼
Well done and keep it up! 👍🏼
The gold bars were probably gold-plated lead.
They got pictures mate.... promised to keep it safe at their bank 😅
*Wood
Wood isn't heavy enough. Even an idiot would see it's not gold@@Halcon_Sierreno
@@samsonsoturian6013 Of course that happens, but do you think that they'd dare to speak out against the CCP in protest?
Gold is almost 2x more dense than pb, tungsten is very close though!
The amazing thing about this bubble is it was able to thrive for years in a place with stable to falling population.
It varies from city to city
They don’t OWN the home. They lease it for up to 70 years. The mortgage starts when you sign the papers. If it’s never finished, you will pay and then it reverts to the local government.
You can extend the “ownership” after 70 years by paying a certain amount to the gov. It’s like property tax, the difference is that they collect it every 70 years instead of annually.
The "tofu dregs" construction isn't going to last 70 years anyway. The buildings will be crumbling after 20 years if the owners are lucky.
That's one of the reasons Chinese buildings are trash, yes@@texaswunderkind
@@texaswunderkind the civil engineers who constructed tofu dregs were being executed or life sentence. only older buildings had such risk, anything built in recent decades don't really have such issue anymore, after several dozens of people executed.
@@samsonsoturian6013 China has the most buildings in the world, millions would have died if chinese buildings are trash. your logic is flawed.
It is mentioned that a billion apartments are empty, but that is clearly a mistake. Since 2000, when the market really opened, they have 'only' built around 200 million apartments, and most of those are not empty. A better estimate is around 25 million empty apartments, enough to house 75 million people (two parents and one child per apartment).
Another number mentioned is that the real estate sector (and associated value chains: raw materials, construction materials, decorating, furniture, appliances, etc.) makes up 20-30% of GDP. This may have been the case at the top of the market around 2020, but now it has clearly fallen to less than half that number, considering real estate investments have dropped around 35% over the last three years.
Western media bro!
There’s no bubble if everything is owned by the party
Welcome to economics it's not how you and the CCP want it to be but how the book keeping see it 😂😂😂😂
A billion apartments is silly. 25 million is wishful thinking, more like 60-80 million which is a huge problem and will play out over many years.
@@rashedprimewhich media do you turn to for the truth, bro? 😂
Thank you for your clear explanation of the Chinese system and how it lead to the problem.
take a gold bar from a ponzi company, probably find out it is gold plated only
I remember 15 years ago telling people that Chinese real estate was a bubble and would soon crash.
I was laughed at. And, it did take longer to crash than I thought, but here it is.
Like all bubbles, the longer it booms, the deeper the crash.
Same here. It’s a country with sable to declining population so this whole construction boom was just insanity. Made a lot of people rich who cashed out. Manny of those people moved to Seattle or Vancouver as multi millionaires.
If you wait long enough every system fails… doesn’t mean you’re Nostradamus
it means nothing... housing should be as CHEAP AS WATER... not like in the states where rents keep going up and up and the landlords get richer... the West just keeps their bubbles super inflated where as china will pop them... do americans really care about China's property prices or they want to look to news media stories like this to make themselves feel better? Will cheap real estate prices spell the end of Chinas development and rise? NO
@@seebasschipman293 Bubbles are well known. They really don't have a basis in "system". The European bubbles occurred under monarchies and democracies.
The Chinese bubble was predictable because we are familiar with them.
People, though, get caught up thinking that prices will go up forever.
That psychology is the basis for all bubbles.
This is what happened.
@@craigkdillon Xi Jinping deliberately popped the bubble because he knew it was unsustainable. He's much more competent than many want to believe.
Your overview of property and housing history is a valuable contribution to the media storm on this topic, thanks.
What this piece intentionally omitted is the fact that unlike the American regulators who were asleep at the wheel and caused their real estate bubble to burst, the Chinese regulators were smart enough to get agead of the problem and engineered a bubble deflation
“Chinese regulators were smart” 😆 that’s the funniest thing I’ve heard all day 😂
Yeah, communists who thought they hacked capitalism
Housing, as a economic sector, depends entirely on ponzi economics. Any economy that depends on housing and real estate as a key economic driver will suffer from low productivity in the long run, and experience banking and housing driven boom-bust cycles. It is bad economic policy.
Every economy in the world depends on housing, its pretty much one of the pillars in every society
Everyone needs housing, demands never cease to exist
Not if you have any idea what you're talking about. Anything can be a Ponzi scheme and people who exhibit rent-seeking behavior like Ponzi schemes so rental homes are often the source of Ponzi schemes
@@samsonsoturian6013 I do know what I'm talking about. I draft public policies. Your statement about rent seeking and rental homes make no sense at all. That is not the definition of rent seeking.
China’s also the manufacturer of the world. They out manufacture the USA, EU and Japan combined. China economy based on gdp ppp purchasing power parity surpassed the USA in 2014.
That's why "Horizontal Growth" is more important than vertical growth.
US suffered from Horizontal growth, the maintenance of utilities was more expensive for the city treasury since the consumers are far apart.
@@jakealexander6046 Yup. Healthy balance is needed.
Not really. Corruption and government/state policies are the issue for almost everything.
more like corruption and companies buying our government is causing these issues. its part of the capitalist system.@@Food4thought1234
In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities
By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities
That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers.
Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate.
Even then, It took them almost 14 years to get their overheated real estate under control
Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018
Why is their Central Government doing this?
Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen.
Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need
In China
Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married
Thus the common prosperity push and the crackdown on the overt displays of wealth in China
Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
China’s home ownership is probably the highest in the world. When the property price can’t continue to rise. No more new apartments are demanded in huge demand anymore.
population is already falling that doesn’t help.
There is no such thing as land ownership for individuals in China! It is owned by local governments??
theres no such thing as home ownership in china. this shits the biggest ponzi scheme lol
@@bullpup1337
O geez, another parrot. ?
Most of these loans are from overseas lenders
A billion peasants got mortgages and credit cards, what could possibly go wrong?
A billion communists who don't understand how the free market works got caught speculating on an endless stream of apartment construction, with tons of government corruption and almost no regulation. What could possibly go wrong?
In Canada, they're starting to offer free trucks with houses, as incentives for buyers
Quebec is much of Canada, not all of Canada
That mostly has to do with Quebec's really weird zoning laws.
i wonder how much money canada uses to support terrorism protest and regime change operations in india ????????
This news is super old, this has been going on for the last 3 years.
Well, it's happening now. The Chinese economy is feeling the pain from the over production of real estate.
They are going to try their best to mitigate the damage but the damage is there. This might not lead to immediate collapse of their economy but it s going to hurt them for many years to come.
Source: Chinese
Agreed but I'm going to watch it from a new source anyway just see lol. I do think it's strange to be talking about it now
this is not news, more like history lessons
More like it's been going on since 1994!
try 15 years
The reporter is not even in China!! In Canada developers were giving away free cars as well, and that was when the market was hot. It's all part of marketing.
She would get arrested in China. And the gold bars were reported by other sources
It's surprising to see landlords taking such drastic measures. I wonder what's causing it.
I think it might be related to the broader economic uncertainties. With the fluctuating job market and remote work trends, people might be reconsidering their living situations, and landlords are adjusting to the new demand.
There is a HUGE real estate bubble in China, its causing a lot of problems. With its population in rapid decline I dont see why they would continue to prop up this bubble. They either let it pop and reset or their population especially young people who cant afford home will rebel. I know lots of young people in China who hates "people" who prop up real estate prices. This could be a huge flash point.
wtf? It was already popped in 2020, do some research. The current situation is the aftermath.
@@GD-8
Exactly. Some idotic folks just parrot western media narratives naively pretending to be smart😅
When I saw the rapid construction of apartments in China 15 years ago, I was assuming this was being done to lower housing prices, encouraging young families to settle down and afford children. That absolutely should have happened with a flood of inventory but the exact opposite somehow played out with prices skyrocketing and young people being priced out of life and dreams of starting a family .
@@anjunadeep.8384 Yeahhh.... Polly (the parrot) can get a cracker? 😜😜😝😝
Thank you👍
Chairman Xi is right.
Property is not for speculation. It's for housing people.
But unfortunately, people are greedy, and they think they can buy and sell houses and get rich and become mini-landlords.
The problem is, everyone wants to become rich and better than others.
So, you have a competition for resources.
In the end, it is best to live with whatever you have and be happy.
Little brief, skirting, but appreciated what *was* said.
Wow.... and we havent even talked about tax yet😅
3:20 Correction: Most of the leases are for under 70 years, but it varies from city to city, from year to year, and what it's being zoned for.
The leases automatically renew after 70 years, and leases only apply to city areas, it's permanent ownership in rural areas.
@leezhieng I imagine in some places, but the thing is the original leases sold when real estate was privatized are just now expiring in most places
This channel writes more about China than any other country. Are y'all THAT jealous and scared?? 😅
It all started when homes were being built for speculation
Love the way she said "percentage" 😆
cute
Calm down people, we have been hearing China's downfall for the past 40 years by western media 😅😅😅
Seems so wasteful to cut off funding for Evergrande and other developers to the point where they have unfinished high rise buildings.
I believe same is happening in India too. In 5-7 years, the property bubble will burst here too. America faced it in 2008, China has been facing it since 2020, India will it in coming decades. And that's all because of Boomers and Gen X.
If the ratio of average income against property prices is 15 to 20 and above... it does not makes sense ... property is in a bubble. Following in there is a shrinking population and there is a high ownership... real estate demand is not going to pick up unless policies are open to foreinger ownership and foreginers to work within the to excite the rental market. Else... there isnt anymore room for real estate prices to appreciate or sustain.
There ist STILL NO private property. The property are still owned by the state and rented out for 70 years to those so called "buyers". They are not buying anything, instead they are renting the property, building the building themselves and losing all of it after 70 years or even shorter then that.
It is called LEASE HOLD PROPERTY. There are many properties like these in other democratic European countries, typically the vertical building real estate developments, and buyers of units also treated the property as "privately-owned" by them, but only the leasing right is owned by private developers. In the case of China, the leasing right is owned by the government. At the end of lease hold period, the lease hold agreement can be renewed.
the same as in Indonesia, people need to put down payment even before the housing or apartment is built. Also there are investors property that buy and keep and rent the properties, that's why properties in Jakarta are expensive
Sekarang sewa dan jual properti makin sulit di Jakarta, seenggaknya itu testimoni beberapa teman kantor. Harganya sudah tidak masuk akal, orang lebih memilih hold dulu atau beli properti di luar kota besar. Tinggal tunggu saja sampai bubblenya pecah karena demand yang semakin berkurang
US commercial property crisis how 😢
After comparing the prices in several videos, I noticed that China's property prices during its peak is 3 times the prices in Jakarta Indonesia (a similarly developing country), no wonder the bubble burst and the prices are decreasing by about 60% or more, almost back to Jakarta levels.😅
The gold bar deals exist because of the minimum selling price on the developer. The developer cannot sell the property price lower than certain limit, or government will not release the title. Instead of decreasing housing prices, the developer has to be creative in order to get around this policy control. The biggest mistake chinses government made was copying the USA real estate market during bush jr. administration; but china isnt giving cheap credit( considering higher interest rate than elsewhere) , but buying old city communities and encouraging these people to buy new developments. In short, china had a fast booming economy thanks for the real estate, but the same time installing a time bomb now is counting down on its explosion 😂
The real estate industry in china is experiencing a temporary setback. It will bounce back by the year end 2025.
The real reason of China housing market decline is dominated by aging populations, including Japan and south Korea too.
Vhut?
China developed houses so fast that the supply has overcome the demand.
The companies build houses even if they are in debt. The people buy houses even if they cannot rent it to someone. The people pay low rent. Ever Grande is bankrupt for some years now and no economy crisis. It western countries a lot of people cannot afford an apartment.
The developers couldn't pay for the projects under construction, so they kept pre-selling new projects, and using the money of the new sales to help finance the old. Classic pyramid scheme.
This sounds like pyramid scheme, everyone buy the house, if everyone has the house buy the 2nd
Property market in China is in correction period, It is not crash, It is call soft landing, so that Young people can afford to buy and get married.
The government should have supported completion of any major development projects that were already in process before implementing the new mandates.
4:25 most replayed point according to that little wavy thing on youtube. I wonder why ppl rewind to that point so often...hmmm
how do i vote for the next topics
If these Chinese developers need a new job, Australia is open and waiting.
Do you still believe china's economic bubble, I do not think so, because I wait for house price dropping down in Shanghai China for two years and I want to buy one apartment in a price I can accept, but it is hard just like stone, I almost lost hope for waiting...
OMG China property bubble!!! Now go check how much 1 bedroom apartment cost in Shanghai and you will be surprised.
Also bear in mind the property is Leasehold and not Freehold. 'In China, all plots of land are technically owned by the state'.
Still, Chinese citizens and foreigners alike can lease from the government for periods between 40 and 70 years, depending on the land’s purpose and location.
Not exactly. The city land is onwed by the government but home owners do not pay property tax like what people do here in the US. Land in the countries is privately owned.
This only applies to city or urban area. It's permanent ownership in rural areas.
They all left and live in Richmond, Burnaby, Vancouver now...
Yes and we will build Chinese community outside of China, establish Chinese culture and help China grow bigger and stronger. Someday you will realize that the influence of the great China is everywhere all over the planet :) China will make the world a better place for human being. We oversea Chinese are working towards a community of common destiny for mankind.
frog in the well
@@lisayip4305 ok but why are you on about something irrelevant
what about all the poorly constructed buildings we see in the news?
You have been brain washed by the western media about poorly constructed project.
China is building dam road and port in our country 😅
The 'news'
Happens all the time in China@@Trgn
Well explained.
Two questions: 1) Is China's property bubble bigger than the 2008 U.S. financial crisis? 2) What possible reasons that stop China from recovery in the next 5 years? I don't get it why this is a big thing....I mean, we've seen worse, have we?
how come it does not happen in australia, canada and states????
Any bubbles will burst. The longer it waits, harder to manage it will become. The biggest bubble of all time is sitting on the south of the Canadian border.
The biggest bubble ever😅
The national debt only matters when a Democrat is in the White House.
The USA is not in a bubble.
Chinese goverment decide to settle the bubble, it is not a bad idea~ Earlier bubble burst, Earlier the market stable~ Not like the Treasury bond, the big bubble is always overlooked in US. Politicians let it expand until it bursts, which is a really disaster.
In your country, can many young families afford their own housing?
REALLY..... 'a billion empty apartments'? A BILLION ..... 1 empty apartment for every rougly 1.4 chinese citizens ? Bullshit
你没经历过中国炒房的高峰就不知道有多疯狂
When is the usa $34 trillion debt going to burst?
The true wealth of an organization is it's happy, able, willing workers !!
I DO hope to see more college scholarships for the happy Chinese people !!
😂🎉😢😮😅😅😊🎉😂
Those are not homes if there are no walls..
Issue is it perhaps will not burst as severely as people think as local governments will try and protect prices fall too drastically as it is their main source of funding. So realistically prices will still be up there but issue is just whether if people will buy. With a declining population to shrink and lack of younger adults wanting a future generation and the “lying flat” movement, the effects of greed from the top could be the collapse of the generation as a whole
Image 100's of million with life savings in something that is worthless. China will be lucky to still be a nation by the end of the decade. 30% housing, 35% internal consumption with demographics that are crashing, 35% Trade that is disappearing as the west leaves for cheaper labor and re-shoring to North America. The economic crash will be brutal and the people will riot.
You may not like China but Xi Jinping saying "homes are for living not for speculation" is one of the most wise words any leader ever said
All developments in this video look like a dystopia. Who would want to raise children in these buildings? Terrible social and design policies.
If this is the whole picture, please brief all the western Politicians, no need to worry about China progress and growth. No need to publish or report China economy. For sure, nothing to worry about China but I am puzzling why the top USA Politicians so worry about China challenging its position if China economy is slowing down and based on Anglo Saxon media analysis China is not going to do well in future.
Any country that engages in real estate frenzy will have a crisis, no brainer. Residential Houses must be used to live and not to be used for quick profit making business. Financialization of homes is like a musical chair game but difference is no one wants to be in the game till the end and rewarded with Biggest LOSER title
who would've thought??
Ji Zingping spotted the property bubble burst theory early. Hence a 2008 like recession was averted.
They do long term planning so all their moves are not reactive, spur of the moment, or emotional responses. they are all well thought out.
The government actually started the ball rolling when it comes to Evergrande's downfall. They saw that Evergrande was existing on unlimited borrowing so they instituted polcies to prevent it. With no more future loans for Evergrande, it started to tailspin and the government has no intention to bail it out. In China, there is no "too big to fail".
They have long term _goals_, but the planning is not well thought out and never detailed enough to put manageable boundaries on the lower levels who actually have to implement said "plan". Hence why the Party is constantly having to react to their own poor results.
You have no idea what you're talking about. USA real estate bubble was created by massive leverage using derivatives.
What’s it like to report on news 4 years too late?
Why won't cnbc report about the homeless problem here in the US where half the city lives on the street because the government allows housing prices to get out of control.
The government needs to step in now and stop this bubble before it bursts and bring the country down like it did in 2008.
@@Freedom_from_imp The homeless population in the U.S. is 0.002 of the population. That's 1/5th of 1%. Don't lie, Jinping.
@texaswunderkind nah, not lying. Just spitting the truth, Donald.
Maybe Chinese real estate can try some predatory pricing to attract buyers inside their home own country
To add: Real estate is the only Chinese industry that doesn't have state-backed actors with unfair advantages, meaning housing receives most speculators.
The real question is. How can we the ordinary people profit from this?
The US isn’t far behind as Warren Buffett has noted.
man they have 400 million of middle class citizens nd im over here living rent free nd still cnt afford a house in the USA
If China's property bubble burst，Tiktok would not be banned😂
There are easily over 2 to 2.5 times as many homes as are needed for their population. This, was before they miscalculated their population upwards by 100 million people and their population demographics had peaked almost a decade ago and are currently crashing with a 0.7 birth rate. Just wait and see what happens when the rank and file Chinese realize their life savings is worthless.
Inflation in China is is at -0.80%, compared to -0.30% last month and 2.10% last year. This is lower than the long term average of 1.75%.
Inflation in the US is at 3.09%, compared to 3.35% last month and 6.41% last year. This is lower than the long term average of 3.28%. The US Inflation Rate is the percentage in which a chosen basket of goods and services purchased in the US increases in price over a year. Worry more about yourself, China is doing just fine.
Deflation is worse than inflation.
Sure your purchasing power increases. But that causes things to play out this way:
People stop purchasing as much due to waiting for their currency being worth more over time.
Companies see less profits due to less economic flow.
Companies pay workers less
Less pay means workers spend less. Less spending decreases companies profits, less wages. A deflationary spiral has formed.
Pop goes the weasel !
5:10 aren't there restrictions on the number of properties people can own? I remember reading about couples in Shanghai getting divorced on paper just so they could buy a second home
There are restrictions on mortgage and down payment if a family already own a home. No restrictions if pay in full.
Isnt that Topic at least 2 years old?
basic stuff, actually DELIVER THE DAMN PRODUCT, most of them are duds or scams elsewhere
an engineered and control deflation of the bubble. china badly needs this. as long as cost is spread and the banking system is not jeopardised, china will be on very strong footing for the next stage of growth. the real interesting thing is to see how the huge bubbles in other parts of the world will end up. unlimited money printing will have consequences..
My phone for a tofu apartment
I'm keeping my phone 📱
It was a controlled demolition. Xi has always said that houses are not meant to be investments, but rather for living. Kind of wish Western governments would have the same balls actually.
LOL , no.
Their government did not plan this. They absolutely do not /did not want this disaster that is unfolding.
They had every optical wherewithal necessary to see the bubble growing, and simply convinced themselves it was OK for many years.
And light of the fact they castigated /belittled the west for the GFC (thus ruling out plausible deniability in comprehending such phenomena) , it makes their arrogance/ignorance even that much more appalling .
TL; DR: “ you thought your 2008 was bad?? hold our Tsingtao!”
......that went awry
LOL….just….LOL!!
If you think anybody is buying your ridiculous revisionist gaslighting, you must live a real bubble.
Hilarious .
Controlled demolition… with everybody still inside the building.
Got it!
Latest news from China, there are 2000 Trillion empty apartments.
Was it really the 'speculation" or rather Chinese regulation of interest rates and debt ceilings? ...
Gold was also not pure and even now it is not pure , I doubt and recommend to not buy gold in China.
43x income? Wow!! And I thought NYC was bad. How do people afford homes there?
If you count property tax, nyc is not really far away from this number.
What a waste..
Why we here in nz cant build enough homes 😢