203
China's 1.4 billion population isn't enough to fill the country's empty homes, former official says
(www.businessinsider.com)
this post was submitted on 24 Sep 2023
203 points (92.1% liked)
World News
32328 readers
934 users here now
News from around the world!
Rules:
-
Please only post links to actual news sources, no tabloid sites, etc
-
No NSFW content
-
No hate speech, bigotry, propaganda, etc
founded 5 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
It's a problem for people who indebted themselves to buy those homes with a valuation based on scarcity. Also a problem for the real estate Chinese companies, sector which represents a quarter of Chinese economy.
Sounds to me like China is trying to solve both of those problems by lowering property scarcity - if this stays controlled it will make properties cheaper so people don't need to acquire as much debt and it will shrink the real estate sector. Since this housing is built through centralized control and not a market, it should be totally under control.
Obviously something unexpected could happen that blindsides the Party, but it looks like politics is in command and everything is proceeding as expected.
There should always be a reserve supply of vacant properties to give people freedom of movement between regions and cities.
That doesn't actually mean there are 65 million surplus properties. A vacant house isn't an unnecessary house. Children move out all the time, families sometimes break up, Chinese citizens currently living overseas or in Europe return home, etc.
I bet there's actually math for this - I wonder if anyone has calculated the optimal amount of vacancies?
Sometimes, you misspeculate. Some developers lost a whole fuck ton of money on the project, but that's more than made up for if you can turn a profit on projects near big cities (which demand is still sky high for).
Is anyone? If I have to choose between "housing shortage" and "housing surplus" I know which society I would prefer.
China isn't really limited by construction resources. There's a heavier constraint in terms of hospital staff and teachers than there is on construction resources.
They're also building hospitals and schools so...