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Nope. Everyone concentrates on those couple of empty cities but the vast majority of China real estate is doing quite well. A couple of reasons; people don't have the access we have to mutual funds and other investments. So they invest in land and property. There is also what is known as land banking. People buy land and properties as investments and a place to hold money. If a situation arises like a medical emergency, these sell off assets or use them as barter. It is amazing how many properties are owned by doctors and lawyers.
The property boom is region wide. Singapore property values have continued to skyrocket even with government constraints in place. In the Philippines, I am aware of a new condo project in a major city on Northern Mindanao. The project was officially announced last Saturday but had been known by many for a few months now. The project consists of two 25 story towers consisting of studio, 1,2 and 3 bedroom units. As of Wednesday, the first tower was sold out. 522 units.
Maybe it is a bubble forming but I have been waiting for years now for a pop and it is still expanding. The audience is millions and millions of people with new money and they want to invest it somehow.
Is it possible that if China moves to a free market and lets people invest in stocks outside China, that they would sell their real estate to buy better performing assets?
Maybe it is a bubble forming but I have been waiting for years now for a pop and it is still expanding. The audience is millions and millions of people with new money and they want to invest it somehow.
Reply to @JohnChisum: Thanks for the report, it's greatly appreciated.
"In the Philippines, I am aware of a new condo project in a major city on Northern Mindanao. The project was officially announced last Saturday but had been known by many for a few months now. The project consists of two 25 story towers consisting of studio, 1,2 and 3 bedroom units. As of Wednesday, the first tower was sold out. 522 units. "
Wow. That is amazing - property demand in the area is still impressive.
Reply to @Rocky: I'm not exactly sure about this but the wealthy Chinese may have access to funds or ETFs that would give them exposure outside of China. The less wealthy might not have this access. It is known that wealthy Chinese have been buying properties outside of China as well including North America. Some cities like Vancouver BC are seeing this in a big way. In many cases, these properties are bought by proxy.
Reply to @scott: Condos are really hot here. Most of these projects have amenities like a pool, exercise facility, and communal areas for grilling or larger parties. Many, like the example I posted have direct access to a mall. That is a popular development here. The developer will build a large mall with condo towers, hotels, and office towers surrounding it, much like a enclosed community.
A lot of these units are basically a small hotel room. 25 square meters (269 sf). A lot of wealthy families will buy units if they have kids in college in the metro areas. That way the kids have their own place to live and study and perhaps later on the parents will move in so they do not have the maintenance issues.
I think the government apparatus is at work trying to get people to see "problems" existing offshore instead of looking onshore.
Besides, did the Detroit bankruptcy get approved? They applied for it, but I didn't see anything that said their request was granted. Not sure which way Michigan votes, but lotsa people who will see their Pensions vanish if bankruptcy is granted will surely not vote for the administration in charge if/when bankruptcy approved.
Reply to @scott: Anyone subscribing to HBO, please watch series called VICE. It finished its first season recently. Episodes available online. There is one particularly addressing real estate/ghost towns in China.
I don't think bankruptcy has been approved yet. Considering this administration's past history of bailouts and coddling of unions, I could see something coming down the pike that would be very favorable towards the pensions of union members. Michigan is a big union state. The way they handled GovMo is the precedence of my thinking.
If they do a bailout, it would set the precedent for future bailouts of municipalities.
Reply to @scott: That's a funny way to show how speculation has inflated housing prices in Vancouver. The average citizen has to be wondering how they can afford a home.
Vancouver has been in a real estate bull market for some time now. When will that bubble pop? In Seattle, I have read news reports that bidding on homes usually goes over the asking price. If the buyer snoozes, they lose.
Memories are short when it comes to real estate valuations and bubbles it seems.
Reply to @VintageFreak: "I think the government apparatus is at work trying to get people to see "problems" existing offshore instead of looking onshore."
Perhaps China could just buy Detroit and all of its debt; a restructed "Renaissance Zone" for manufacturing. China could then have a more diversified international portfolio with nat. gas facilities in Texas, other natural resources in Canada, rare earth metals and related in Africa, and a place for vacations for the work staffs if and when they conclude purchase agreements in Greece. They already have money in Michigan; so why not a bit more.
Reply to @catch22: Hmm...if you watch Fox News, you will hear "EVERYTHING needs to be privatized". Now if China were to actually make a bid for Detroit, wonder what those same guys would say.
Comments
The property boom is region wide. Singapore property values have continued to skyrocket even with government constraints in place. In the Philippines, I am aware of a new condo project in a major city on Northern Mindanao. The project was officially announced last Saturday but had been known by many for a few months now. The project consists of two 25 story towers consisting of studio, 1,2 and 3 bedroom units. As of Wednesday, the first tower was sold out. 522 units.
Maybe it is a bubble forming but I have been waiting for years now for a pop and it is still expanding. The audience is millions and millions of people with new money and they want to invest it somehow.
"In the Philippines, I am aware of a new condo project in a major city on Northern Mindanao. The project was officially announced last Saturday but had been known by many for a few months now. The project consists of two 25 story towers consisting of studio, 1,2 and 3 bedroom units. As of Wednesday, the first tower was sold out. 522 units. "
Wow. That is amazing - property demand in the area is still impressive.
A lot of these units are basically a small hotel room. 25 square meters (269 sf). A lot of wealthy families will buy units if they have kids in college in the metro areas. That way the kids have their own place to live and study and perhaps later on the parents will move in so they do not have the maintenance issues.
http://blogs.wsj.com/moneybeat/2013/07/31/asian-funds-set-to-snap-up-global-property/?KEYWORDS=global+property
Besides, did the Detroit bankruptcy get approved? They applied for it, but I didn't see anything that said their request was granted. Not sure which way Michigan votes, but lotsa people who will see their Pensions vanish if bankruptcy is granted will surely not vote for the administration in charge if/when bankruptcy approved.
If they do a bailout, it would set the precedent for future bailouts of municipalities.
"Crack Shack or Mansion":
http://www.crackshackormansion.com/part2.html
Vancouver has been in a real estate bull market for some time now. When will that bubble pop? In Seattle, I have read news reports that bidding on homes usually goes over the asking price. If the buyer snoozes, they lose.
Memories are short when it comes to real estate valuations and bubbles it seems.
Yeah, I agree. I've thought that for a while.
They already have money in Michigan; so why not a bit more.