1 April, 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
CHINA
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
IRAN
Time for a deal with Tehran, a reliable partner against the Islamic State group
by Bernardo Cervellera A framework agreement on the Iranian nuclear issue has to be inked by 31 March. US Republicans, Israel and Saudi Arabia are fiercely opposed to it for ulterior motives. Hassan Rouhani wants Iran to come back into the international fold. Tehran is playing a mediating role in the Middle East. For Vatican nuncio, “there is no evidence that Iran is preparing a nuclear bomb.”
CHINA - VATICAN
BREAKING NEWS: Chinese police seize two priests in Mutanjiang
by Bernardo Cervellera
CHINA-VATICAN
Nothing to toast between China and the Vatican: Beijing wants complete control
by Bernardo CervelleraFor the Global Times (the People's Daily) China does not like the "Vietnamese model" of agreed episcopal ordinations. The Chinese Foreign Ministry’s embarrassment in front of the Holy See’s countless efforts. China wants the Vatican to accept all excommunicated bishops and to keep silent on those who are underground and imprisoned. The case of Msgr. Cosma Shi Enxiang. Without religious freedom, diplomatic relations are pointless. The work of mission and the unity of Catholics in China. A task for Xi Jinping: implement the anti-corruption campaign in the Ministry of Religious Affairs and the Patriotic Association, which have grown rich over the decades on the backs of Christians.

Dossier

by Giulio Aleni / (a cura di) Gianni Criveller
pp. 176
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.