26 November, 2015 AsiaNews.it Twitter AsiaNews.it Facebook            

Help AsiaNews | About us | P.I.M.E. | | RssNewsletter | Mobile

mediazioni e arbitrati, risoluzione alternativa delle controversie e servizi di mediazione e arbitrato

e-mail this to a friend printable version

» 07/09/2010
Property speculation leaves 64.5 million vacant homes in China
Speculation in the real estate market has generated such a high rate of housing vacancy that it could lead to social disorder and financial problems, an economist with the Chinese Academy of Social Sciences says. The government, meanwhile, crosses its fingers.

Beijing (AsiaNews/Agencies) – At least 64.5 million houses are lying vacant in China. This is sign that the property market is in for a tough time in the not so distant future. Indeed, the mainland’s real estate sector is dangerously overheated, and could threaten the country’s financial and social stability, a prominent economist wrote in an official newspaper today.

Yi Xianrong, an economist at the Chinese Academy of Social Sciences, noted that estimates from electricity meter readings show that 64.5 million apartments and houses stand empty in China’s urban areas, many of them bought by people counting on a constantly rising property market.

Writing in the People's Daily, Yi said the level of empty housing was “shocking”.

“If this outsized property bubble does not burst, it will hurt residents' well-being, and also affect national financial security and co-ordinated national economic development,” Yi wrote.  In his opinion, the overheated property market was misallocating resources, distorting prices and squandering the wealth created by economic growth.

Even though the article was published in the newspaper’s overseas edition, that it was published at all shows how much the government is afraid of the bubble and the instability it might generate.

Indeed, Beijing has already adopted a number of measures over the past few months to cool the property market, including raising down payments and mortgage rates. However, they do not seem to have had the desired effect yet.

Property prices continue to rise nationwide, 0.2 per cent last May. This is especially hard for the weakest segments of the population.

“The problem now is that investment in the domestic property market has completely overturned China's traditional concepts of wealth management,” Yi explained.

e-mail this to a friend printable version

See also
01/11/2010 CHINA
Dangers looming over China's economy in 2010
07/06/2010 CHINA
Real estate bubble close to bursting
06/01/2010 CHINA
Chinese growth slowing down again in May, Wen Jiabao voices concerns
01/19/2010 CHINA
In 2009, property sales reach 4.4 trillion yuan
02/06/2009 CHINA
Life sentence for creator of Pudong district, Shanghai's showcase neighborhood

Editor's choices
Paris Massacre highlights the failure of Muslim integration in Europe
by Catherine FieldThe attack in the heart of France highlights the crisis of Europe’s model of coexistence. Social unrest, poverty and marginalisation feed youth extremism and radicalisation. A New Zealander journalist, expert on expertise in religion and interfaith dialogue, talks about it after undertaking a journey through the French Muslim world.
For Nîmes imam, Islam should not be held hostage by extremists
by Hochine DrouicheFrench imams condemn the Paris terrorist attacks and disassociate themselves from violence committed in "the name of our religion." At the same time, they ask Muslim communities to dare leading a life of dialogue and friendship with Europeans, without fear or arrogance. For centuries, Muslims have ruled out reason from their religious life. The vice president of French imams bears witness.
AsiaNews marks 12 years: Persecution and hope
by Bernardo CervelleraDespite a worldwide increase of ignorance, indifference and superficiality, many signs of love and hope resist even in the most gloomy situations: the Iraqi mother who gives birth to her child in a refugee camp and smiles even though she has nothing; the Indonesian Muslim mother who blesses her son who became a Christian and a priest; the Chinese Christian families that welcome children thrown away because of the one-child law.


Copyright © 2003 AsiaNews C.F. 00889190153 All rights reserved. Content on this site is made available for personal, non-commercial use only. You may not reproduce, republish, sell or otherwise distribute the content or any modified or altered versions of it without the express written permission of the editor. Photos on AsiaNews.it are largely taken from the internet and thus considered to be in the public domain. Anyone contrary to their publication need only contact the editorial office which will immediately proceed to remove the photos.