I can post videos of decaying buildings in the USA too - not really super relevant.
The fact is that China is urbanizing at an unprecedented rate. You don't really have to believe the government - just go visit basically anywhere in China.
The fact is that China is urbanizing at an unprecedented rate. You don't really have to believe the government - just go visit basically anywhere in China.
Problem is that despite the urbanization potential that doesn’t mean the properties are correctly priced or that they’ll continue to go up.
I spent some time in another Asian country that has a per capita GDP 1/10th of the US, yet housing prices are comparable to the mid-west US and most are empty. Most are owned by the ultra rich and used to launder money. And I’m not talking prime location, these are basic apartments on the edge of the city going for $100,000USD or 30-40x average annual salaries. Unless GDP goes 3x no way those prices will hold.
It’s a massive bet on continued income growth and demand for real estate which is not a given, which Japan showed with its massive property bubble.
Real money just buys western passport (for themselves of their children via birth tourism) and buy real estate on the North-American west coast.
Meanwhile my current home outside china is almost 100 years old and not garbage.