Posted on 04/15/2014 8:03:31 PM PDT by Oldeconomybuyer
Nothing is going right for Hangzhou at this moment. Walmart will be closing its Zhaohui store in that city on April 23 as a part of its overall plan to dump marginal locations—about 9% of the total—in China.
Thanks to the world’s largest retailer, another large block of space in Hangzhou, the capital of Zhejiang province, will go on the market at a time when there is generally too much supply. The problem is especially pronounced in the city’s premium office market. Hangzhou’s Grade A office buildings at the end of 2013 had, according to Jones Lang LaSalle, an average occupancy rate of 30%.
The real weakness, however, is Hangzhou’s residential sector. The cause is simple: massive overbuilding. Sara Hsu of the State University of New York at New Paltz writes that Hangzhou faces “burgeoning swaths of empty apartment units.”
(Excerpt) Read more at forbes.com ...
That’s ok. They will all be moving to their new homes here soon anyway.
US property law, as recognized internationally, has few restriction on foreign national ownership of land free and clear. That should be changed.
This is why they are buying US property. The California bubble peaked out about 5X average annual earnings. Housing in Beijing has gone up to about 18X annual Chinese earnings, or worse. Smart Chinese (or just corrupt) who made money during this boom have known prices are rediculus there, and that is why they started buying everywhere else.
After China crashes, they can sell their assets here, and move the money back. They will likely lose money on the American real estate, so I am not worried about them buying up America. In fact, we will be getting a lot of cash back for free.
Where and when was this collapse? Was it earthquake related?
In China some have lots of cash with cheap land, materials and labor why not build for investment? Hoping that someday there will be a middle class.
yeah but some of that infrastructureis gonna decay from lack of use too. and considering building practices there,if stuff does getused andhard due to large population, it’ll breakdown big time.
It is probably insured.
This is what happened with the Japanese during the 80s. They purchased real estate at the market peak here and then when their liquidity crisis hit they had to do a fire sale of those assets.
The Chinese will probably sell their bond holdings as well at a steep discount.
There will be negative effects here. It will drive down real estate prices and the rising bond yields from discounted bond sales will drive the rates higher on new bond issues.
How do ypu translate Potemken in to Mandarin?
I can’t wait to hear them start to scream on property taxes that are tied to the ‘perceived value’ of the property they will now own in the U.S.
Not to worry...... time will solve the problem as it did in Houston.
If you build it they will come still applies
bump
“The Chinese are buying up real estate in this country at a record rate.”
That’s a fact. The ChiComm crony capitalists are looking for safe shores to invest and hide their ill-gotten cash. They are also making real estate investments in Hong Kong and London. Realty is quite fungible for the ChiComms. They will sell real estate investments overnight if conditions become unfavorable and invest that cash in another real estate venture of a different country.
The UK is currently selling visas to wealthy ChiComms for £2.2 million a pop, with a required additional investment of £500,000 to a designated “charity.” I believe that the US offers a similar deal although I haven’t found proof of that yet.
Chinese apartment building fell over before anyone moved in. Poor construction job.
But oh that bubble housing market economy!
The Japanese would have done better holding on to their American assets. I expect the Chinese will be buying inflated Chinese assets all the way down. In Japan, "all the way down" meant a 90% drop from top to bottom, with no inflation adjustment. Of course, Japan real estate fell steeply because Japanese output per capita had caught up with the US, so the easy growth (from adopting or reverse-engineering US tech) was behind it. China's is about 1/6 or 1/7.
The building was built first, then the excavation for the parking garage started. Canal and rain soaked earth on one side and a void on the other. Nature stepped in.
how would you like to be living in one of the other sister buildings? lol...I think they tore them all down but don't remember
My first thought was, what kind of idiot doesn’t excavate for the parking garage and then build up from there. The link supplied by rolling stone has lots of interesting info.
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