GHOST CITY - Inside the Chinese Housing Bubble
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- Опубликовано: 15 окт 2016
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Speculative buyers have eschewed Chinese stocks in favor of property, prompting even the chief economist at the central bank of the world's second largest economy to declare that housing was in a "bubble."
But when strategists at UBS AG recently compiled a list of bubblicious housing markets, there weren't any selections from mainland China due to the lack of reliable data on the subject, underscoring the continued difficulty in declaring Chinese real estate to be in overheated territory.
But Deutsche Bank AG Chief China Economist Zhiwei Zhang thinks he's pinpointed "a clear sign of a bubble" in the market - one that will end in a major correction in two years' time.
After analyzing how much developers were willing to spend to win land auctions in 10 major Chinese cities in which values are already up 23 percent year-over-year, the economist found that the business case for these bids evaporates unless property prices continue to increase.
Hop on and find out!
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"The Chinese people seem to think it will go on forever" - That's exactly how a bubble works.
@fane babanu True
This picture is a trailer, the beginning of the end of China's growth, and proof that central management is just utopia.
@Skeptical Slim China is not an important consumer of imported consumer goods, only greedy investors and Arab sheikhs will lose, Earth and local workers from hundreds of countries will benefit.
Why don't you take care of your own busIness??DEBASISH ..
They have been saying it for 20 years
with my luck, the only other tenant in the building would live above me and be noisy.
And their dog craps on the porch.
OMG me too!
Yep. How come your upstairs neighbors is always some psychopath who never sleeps, doesn't work, and stomps around on the floor 24 hours a day?
I am you
@@Nickelodeon81 your comment just made my day, thank you sir for that :D
When you're playing cities skylines but have no idea what you're doing.
Surprised this didn't get more likes. lol
me exactly, like, I build a huge city will massive housing (RICO mod+soviet apartment buildings+some arcologies) and at first, sure, people move in, get those buildings nice and full, but after a few weeks, the people stop coming, and they start leaving, so, in the end, those buildings end up mostly abandoned, with a few people still living in them.
They're probably using pirated copies of Sim City 2000 as training sim for urban developers.
They should really hire some feng shui experts.
Using unlimited money
demand master mod :)
I was working at a Chinese company in Silicon Valley. All the Chinese tech workers are driving up California house prices. I would explain to the Chinese employees that the house prices cannot keep going up because their value is based on the ability of salaries to pay the mortgage. When the housing bubble popped in 2007 they thought I was some kind of genius.
*_PLEASE COMMENT NOW. WE NEED YOUR GENIUS MORE THAN EVER. HELP. SOS. 911._*
BUBBLES ARE THE OWNER FAULT NOT THE BUYERS!
@@dragonfly1929 And the banks, who allowed zero downpayment house purchases at the height of the bubble.
except they turned out to be right at the end, dollar value of houses now are much higher than 2007, as long as the fed keeps printing money, house prices will continue to increase.
@@lutherschultz4725 That would explain how they have prevented the crash thus far.
be careful, this is journalism, and you know the government hate journalism.
I don't believe Falungong, 50 cents army.
I guess you know Chinese Language very well, then you should check "Weibo", "Tianya", etc, you will find "journalism" everywhere...the government does hate journalism, but don`t need to be careful...
Max Payne No, since the government does not care about this. You can find much more hating-Chinese-government videos on Chinese websites.
Gaindhi go fuck yourself
50 cent army, YAYYY!!
Incredible ghost cityscape. Good backdrop for an alien invasion movie.
Carl Hopkinson true
Alien invasions only happen in the US
well at least the aliens wouldn't be homeless
It was like a futuristic city on another planet. A bit like the reality.
and tan no CGI just blow it up independence day style
Those buildings look almost unreal, like from a dystopian future. O_O
@Phil Weatherley did you have the same feeling you wanted to go there and explore that city? damn so mysterious
Could make the Best
FILM ……
Or a standing nightmare, cf. Inception...
What if i told you we do
14:10 "There will always be housing in China"
The problem is that 1/2 or more of those buildings are made with the crappiest material possible; hence, some of those buildings will become death traps in about 6 or 7 years.
Then why did people move into the ‘ghost city’ in Inner Mongolia like they said??
What a huge scam
I'm expecting to hear of ongoing collapses over the next 20 years. Plenty already including bridges built poorly.
Tofu-dreg projects.
@@Darkrider6970 huge massive stimulus spending, basically to churn the economy
This madness is spilling over. Chines tourists come to California, Florida, etc and buy properties where they never intend to live. This drives up the cost for locals.
Bala Sheeda ... Same in Bangkok and cities in Australia.
Vancouver, BC Canada.
For them housing is just a commodity.
Same thing here in Germany
The thing is it sounds sinister but as soon as the economy collapses all the people who own those houses are gonna have to sell them or be in debt.
these investors never played sim city
Probably censored like everything else in china.
Best comment
Mathieu Mansire They clearly only played "Emperor: The rise of the Middle Kingdom". Every house you build will be filled immediately if there are basic needs fulfilled and acceptable taxes.
i think you dont understand the real world sim city then. easy and fast exp - this is their cheat engine where they grind for their resume and skills. their builders level up and their pocket fill with money.
Yep, basic economics can explain while this whole false economy of stupid amounts of supply to no demand can not work. The house of cards will fall, and it's going to be a mess when it hits worldwide.
This is like a cityscape from an old video game, where every building you go past is exactly the same.
....Can you imagine living in one of those massive apartment buildings and it's only you and one other family that lives 10 floors below you? How spooky is that, even in the day and night time! Maybe some person has died in his or hers apartment 3 years ago, a skeleton sitting in a chair, no one to check in on you, could go on like that for another 10 years time....lol.
I would claim the entire floor. Break into every apartment on my floor and live in them.
Well easy call all you friend to live the empty house near your house for free..
I would masterbate in every single empty apartment on my building so i can drive away potential residents
@@DeezNuts- me too, i would fap in every room of the building XD
Hahaha
Modern apartment in China that stand move than 5 years, bro that too good to be true
And it's the likes of this why Australia has eventually change it's foreign investment laws just recently.
I suspect in 20 years the sub-standard buildings will be unliveable and need to be demolished due to poor maintenance. Such a waste of resources.
I read Shenzhen was using ocean sand in the concrete, and the salt eats the steel rebar and ruins the support in skyscrapers
Those are the past and a few occasional cases, government is very strict with the quality of buildings these days
we built this city on wok and roll!
lol
Egg-roll???
Wok and Wall, and firewalls..
FrankieTheWop. Thanks bud. I got a good laugh out of that!
You got that right.
Ooooooh. Something just clicked for me. This is why prices in America are skyrocket ing. Chinese can t buy more than one or two houses. Now 30% of properties sold in California are to Chinese. Holy shit. This is now a GLOBAL bubble. God help us all.
The Chinese and other affluent and oligarchs are buying properties worldwide since 2012... but China unless you're part of the elite to excluded from the rules, it's against the law to invest outside of China... so many are doing it on the down low, if they're discovered, they'll get in trouble.... not sure what the penalty is.
So they do it in cash, and quietly LOL! Unless they're part of the elites or think they're of the elites, they're above the law.... kind of like the US and essentially every country has become. Welcome new feudal nobility oligarchy... wonder when they're add theocracy into the equation to keep the masses mindless superstitious and demand titles of authority?
What if we let citizens of our country own its land instead of foreigners?
Bubbles come and bubbles go, when the Celestial bubble pops, it will have a rippling effect all over the planet. Hold on to your prayer rugs because it's only a matter of time.
It would actually be a good idea to discriminate Chinese investors (specifically mainlanders) on the grounds that their housing bubble will spill over to your own economy. You could argue it's anti-Free market but remember the Chinese economy - although no longer directly dictated through socialist central planning - is still a fragile government fixture the ramifications of which we can't foresee. It's better to take a careful step back and take on the offer of the second highest bidder for the sake of long term stability.
What the economists say is that We The People of the uSA have been exporting dollar bills to the world, and that those bills always come home to roost.
Something thas hasn't been mentioned is the fact that barebone empty houses and apartment buildings that aren't being used or taken care of will not stay like that at all they will deteriorate fast. In time this can and probably will result in not only empty housing but just lost money, space and effort. Many of these buildings could end up totally useless especially when inferior building materials were being used as happens in at least 50% of Chinese building structures. PS correct me if I am wrong
+bitesizefirst Actually, assuming the structures do not simply topple...which given the quality of the work and materials, would not suprise me... These monuments to greed and disaster create a market for reclaimation of building materials. When you have used enough concrete in building a "shell" to build a metropolis that can house in the neighborhood of half a million people, can you imagine the value of these materials to another developer?
I am sorry simon didn't quite understand you're respons. When the owners of these buildings don't want to sell and would actually wait so long that they already would be detiriorated there is not much that can be acclaimed. Concrete that has been hardened can't be re-used, steel that is rusted (like the concrete reinforcement rods inside the concrete) can't be refurbished, it would even cost a lot of money to dispose of all these monuments of greed as you've putted it.
They are useless, as no one is using them. Though using them as an investment. Trouble is most people who want to live there locally, or have been living there before can't afford to live there anymore, since the costs of real estate keeps going up. You'd have all of these unused units yet have massive homelessness.
In Vancouver, B.C., Canada they've been doing the same thing. Foreign investment has driven many locals to live in the street.
You are wrong so thank you very much.
bitesizefirst : Agree. I myself had a bad investment on a building that spent years with 70% empty apartments, deteriorating, after 15years of loosing value I was able to sell the apartment. The place is still half vacant.
I'm trying to imagine what traffic (foot and vehicle) would be like going in and out of there once those things are filled. With talk that that block of land is equivalent of a smaller city in population makes me think it would be insanely condensed.
I really hope the center of each of those buildings consists of like 20 elevators lol
As a Chinese, thank you guys for doing this.
Did they let you alone or are ya in a concentration camp?
vinícius sardenberg I’m in a concentration camp right now
@@viniciussardenberg6420 I'm Chinese and I have been in a concentration camp for 50 years since I was born. I was told that in 10 seconds, I'll be arrested for getting on RUclips. I'm now sending this comment using magic.
Are you safe🥴
@@Charlie-vr8pt ur brain washed by the political media Chinese people are enjoying their leadership
Who remembered this video after the Evergrande collapse?
me
Yes!
It's taking resources and using energy to build those apartment blocks, only for them to remain empty. That's no good for the environment, it's so wasteful and not a good use of the Earth's resources. Just to hopefully make money. SMH.
my favorite part is when u guys ride the bikes
lol
Who says there is no blue sky and sunshine in China? Also there are some nice roads to ride with a bike as I see. You do not have to worry about the traffic!
Or fresh water. Or electricity or cable or the internet. lol Yeah, you don't have to worry about shit when you live in a ghost town. LOL
I know right!
It's a great concept. I agree.
Just watching this clip makes me realize just how epic evergrande and China's housing bubble will be. It's insane!
It's coming to fruition right now
the Chinese greed for money will be their fall
And your country? Not greedy?
Diana B it’s the People Not the country, my country is already devastated by the greed of money and corruption. So I know
Don't know where this nigga is from, but I'm greedy too. I save close to half my income and I invest it. Are the Chinese really that different?
its about being so greedy that makes the life of people and the environment worst.
The only difference between them and us is that we can sue. We sue corporations, we sue governments, and we actually win those lawsuits. If a worker dies in the US, a company can expect a lawsuit of at least $10M, so they care a lot about workers staying alive. China doesn't really have a system for that, so employers don't give a shit if employees die. Just get new employees off the street and move on like nothing happened. They also don't care if pollution they pour into the river causes people to die. No lawsuits = no harm done.
I am Chinese, i pray every day for the slump of the house price. I will never have a grilfriend when the price is sky high. I am hopeless and my life sucks. I will do whatever is takes to end the communist regime.
Why do you think you can only have a girlfriend if you own an appartment?
Unfortunately, that is kinda how it works here.
Isn't it enough to rent one?
Eric Chow are you kidding me, the only none communist Chinese guy commenting on this channel, and I've been following those guys for a while, people like you are very rare unless I misinterpreted what you said
That is the deal in China. You want a wife or serious girlfriend, you need an apartment and maybe a car.
I was in Tianjin 2 years ago and was stunned to find out that the massive hotel we were staying in (floor to ceiling marble etc) was opened specifically for our group. There were 15 HUGE skyscrapers that sat empty, an empty university campus and “brand new” buildings falling apart.
We went wandering through the hotel and were gobsmacked at the empty rooms with high end finishes, layers of dust everywhere and mortar falling off walls.
Bizarre and surreal!
In Germany where i come from are the appartments sold out before the building is even finished.
Today is year 2021 - this video predicted the Evergrande failure.
somebody posted a link to this from a recent patrick boyle video.
12:07 serpentza: "...there's a lot of speculation as to when this housing bubble is gonna burst..."
looks like the answer might be fall 2021
It will for foreign investors who bought shares of Evergrande. So far their "offshore" bonds haven't been paid, but CCP has been buying chunks of Evergrande's business. That transfers cash to Evergrande for domestic interest payments, gives them the money needed to continue building projects already sold to domestic home-buyers, and transfers key assets to the CCP (in the form of a sale to a state-owned enterprise).
I believe the CCP will go out of its way to minimize the disruption to Chinese home-buyers, but will leave foreigners holding the bag because they can't create the domestic unrest the CCP is sensitive to.
"Think it's a sure thing and won't go down." That is the definition of a bubble.
Interesting that no one mentions functioning utilities (electric, plumbing, H2O, sewerage- municipal or septic). The heck with the “look”, without these functional and maintained items why in the world would a person invest in a purchase? Great videos, guys. This is my second look at this one.
they are like monopoly buildings. just imagine the additional resources it would take to fit all these out for habitation!
Fascinating insight guys.
This looks significantly worse than the Japanese property bubble of the late 1980’s, just before the Japanese economy imploded and has remained stuck in a deflationary environment ever since.
I suspect China will not make it to developed country status before technology makes the billions of Chinese workers obsolete. This looks like a looming disaster for not only China but the world economy.
Remember only two countries have made it to what the OECD considers developed country status since the end of World War 2, they’re Spain (since the end of the Franco era) and South Korea.
Ireland would be one too no?
Uhh japan? They were somewhat industrialized, but they certainly aren’t what we’d consider developed
Look at the size of those buildings and how spaced out they are ! I feel so little ! It's like 5x the size of NYC ! And the fact nobody lives there in a giant town makes me think of an apocalypse.
Worst part is the bubble can make people poor overnight in mainland China.
Michael Tsang aren't those buildings made of extremely cheap materials and unsafe to live in? I see videos of entire buildings toppling over and it's always in China.
RanochVTX I mean look at the size of those buildings and land. It's enormous. Combined with the fact that it is almost empty, it reminds me of a movie from zombie apocalypse. Or end of the world where humanity is about to be extinct. Look at the setting.
Those so-called "cities" won't exist after the shit hits the fan. They're already falling down on their own. On stiff breeze will knock them over.
Reminds me of a termite mound or a dragons nest. I get the impression that the Chinese won't be settling down for very long.
There is an oversupply of houses because there is an oversupply of credit. This is the greatest failure of monetary systems in history.
nixnix99 WHEN THIS SHIT COLLAPSES = THE ENTIRE WORLD ECONOMY WILL TAKE A SHIT.
Maybe cool locations for movies?
elevenstar And for quadcopter racing wow
Zombie Apocalypse movies. LOL
I'm from Europe, and what I find truly weird about those cities is - when I was around 10 I've started having dreams about exactly such places. Completely crazy and surreal cities with tons of skyscrapers and no context around them. Very little population, almost no cars, no life and it was a bit scary to walk into the buildings because they looked unfinished inside even though I knew they were officialy done and someone even lived in them, just very sparsely. While going through a staircase in those dreams I was always on alert because I knew anything could fall off anytime, and well... you know the quality of those real buildings, don't you?
I just never would thought that reality could catch up to my crap imagination...
BluesyBor Strange when bad dreams become bad reality.
Naaaah, those dreams weren't bad. I'd call them exciting, even if it was unnerving trying to leave an estate or a huge park and going in circles. But man, if such parks appeared in real life, sure enough I'd love to live right next to them and be able to walk there every day. But the real buldings, yeah, they aren't as crazy as in my dreams but I guess not a bit more trustworthy.
I don't think it is just your imagination. I have been having dreams like that too since I was a child and still have them as well as diasaster dreams, flooding, sinkholes, falling buildings and so on. Dreams with massive tornadoes moving across cities. I believe some of us are being shown visions of the future in our sleep, the ones who can receive them. Call me crazy everybody if you want, but just wait...
kauston2 I had a dream about 4 months ago where I was being on a tour bus through rural china, the guy said, ‘and if you look over there, you can see worriers plowing the land. People werent out there, but rather all it was was just a giant screen showcasing people working. Giant screens in every direction. Who are they fooling, robots?
@@christianmolina7576 That is a very interesting dream you had, I think there is much meaning in it for the Chinese people.
All of this, and china still have over crowding issues.
it's about jobs too. no use having available housing several hours travel time from where you work you still can't live there.
RagingPanda102 over concentration of the cities same issue with Australia Hawaii looks much better to live in
RagingPanda102
different distribution. They have housing shortage in Beijing but these towns aren't in Beijing. XD
because development is not equal in all regions, people still gravitate toward the big cities
It's like another Soviet collapse...
jo ki you mean like housing crash in the U.S?
mehrshadvr4 if it recovers this quickly it wasn't a crash, crash like breaking into Little small countries like russia
TrueDetective I mean the economy
+A Artisan yeah right your and it is due my from prospective capitalism and not enough regulations. It reminds me of real estate bubble in the us, I wonder for years this can't last, then you know what happened. But this is ten times worse. Chinese people unfortunately don't want to hear it. It's hard finding that healthy balance, capitalism great for growth and the entrepreneurial spirit, but when it crashes the honeymoon is over. Anyways I know they own form economy that isn't the exactly the same.
No, that's the capitalist West, debt?
I love that you guys are just chillin' on bikes and discussing stuff like this. It looks like so much fun!
Get divorced so they can buy more houses, what’s going on in their heads, love responsibility reputation dignity compassion integrity... seems like all these concepts don’t exist in their heads, heartless people, pity them!
Greed ! Greedy people are worst.
they are atheists
Moises Frias their gods were destroyed by the cultural revolution
@@moisesbeyond and what does their religious choice have to do with the price of rice in China?
Jackass.
@@ianchandley In all athiest countries there are low respect for human Life....Example URSS, Comunist China , Cambidia under Pot , North Corea, etc
Man I love this channel
Will you fellas ever run out of content to talk about... Haha.
Great subject. Very interesting.
Question: Will ADVChina be on hiatus while Winston is touring America?
Also, I would like to point how serious these guys are. In an age where there is so much nonsense on the internet/youtube, these fellas keep it real. Thanks you guys so much for the effort. Keep up the great videos. I hoping to visit China sometime soon.
No, we have 2 months of content ready to release, and we will be doing collabs when he is driving across and I am still in China. C-Milk
ADVChina that's awesome
you guys are great
Thanks man! We enjoy doing it :)
I am Lee Except Winston DOESN'T keep it real. A major part of his personality is COPIED after a character named Barney Stinsen from an American TV SHOW called "How I met your mother"
Seriously, type in
'Barney Stinson awesome'
here on RUclips and you'll see I'm right. He even COPIED the consistent use of 'awesome' along with the always wearing of a suit. Very Chinese of Winston for COPYING that lol
DonD512 you really have it out for poor old Winston eh? every video the same comment
You guys are awesome for covering this. Would love to see an update on the housing market there.
Dude you live in Huizhou, if you build apartment blocks anywhere near Guangzhou or Shenzhen, it doesnt matter how much you build, it will be sold out by the weekend.
All of your posts are so interesting. I enjoy them very much. They open a whole new window on what is really going on in China. Thank you.
I love how neither rpm gauge and the purple bikes speedometer doesn't work. lol.
Dude this video is so nice I appreciate that you're supplying me this view. And I thought Manhattan had tall buildings lolol, and the way they're stacked like that, mind blowing
Money laundering on steroids . . .
my wife is chinese, im canadian, her parents sold their old house and bought a block of concrete like in the video, but in huangshi, it was empty, they are brand new appartment buildings and are filling quickly, i guess it depends the region...
Wow now I understand why Chinese investors are causing problems with real estate in Vancouver.
And I'll love to take my car there and hoon like no tomorrow
Those investors are mostly corrupted chinese government officials
jo ki Absolutely. those marxist cunts.
+FreelanceArt101
What's your problem with Marxism?
+Papa Asian sticker The Chinese communist party wont be affected by the bubble.. Only the people will go poor overnight and then these ghost cities will literally be unusable.
He's stupid. In the West, morrons think they know everything, so they hate communism, because their government tell them so. You see, he dosn't have problem with communism, because they don't know anything about it. Just right-wing morons parroting what the heard from their neo-nazi governments.
its trippy how flat and concreted the land is.
As a New Englander, I do not trust anyone from a flat part of the world, especially if it isn't forested. Places like that just aren't natural.
*shivers*
@@userequaltoNull lol
That ghost city filled up because the West noticed it. Believe there is an unbelievable number of them around China. Some in styles of England, Germany, US...... used mostly for wedding pictures and stray animals
They are even planning to copy the oldest known settlement in Denmark, they are gonna send hundreds of people to measure and take pictures in order to do a 1:1 replica, despite that the town in question is not really special in any way, especially compared to many other towns of a similar size.
Chinese love to copy other people in every aspect. Lol
I believe the cultural minister has admitted that their system has stifled their cultural growth and it would simply be easier to "import" it.
@@sbalogh53 true.
This is the most interesting video you've ever done, and you've already set the bar high in your previous videos.
Chinese are not allowed to invest in foreign equity, such as Apple or Google. The domestic stock market is a roller coaster and is extremely risky. So you're left with real estate as the predominant investment vehicle. Rich people have to put their money somewhere and their choices are very limited. Cities like Beijing limit the number of units you can buy, so they buy in places like this. At least that's my basic understanding of the economics of this.
Chinese have been investing heavily in real estate in Vancouver, BC, Canada. So much so that the housing prices there have skyrocketed, making it extremely expensive. They recently instituted a tax on foreign real estate buyers, and the prices have dropped quite a bit. The current problem is they've since started investing here in Seattle, so our prices are going way up (in addition to all the buying from Amazon and other well-off tech employees).
The Shadow Broker
not private investors
The ADVCHINA CHANNEL IS FANTASTIC THE COMBINATION. AND THE COMBINATION OF BOTH OF YOUR PERSONALITIES IS GREAT AND LIKE YOUR EVER CHANGING INTROS
love that the road is so bumpy, I can hear it in your voices!!! :)
The amount of selling that they have to do to shift these apartments! Cold calling, armies of salesmen/women on the streets, whole sales buildings at the front of the complex, models of the complexes set up in shopping malls... doesn't change the fact that people usually want to live near their work. No people = no jobs. No jobs = no people.
It seems like it would behoove these real estate developers to also build adjacent commercial districts and industrial parks near these apartment buildings while offering incentives to companies to set up shop in them and also improve upon existing infrastructure to support those businesses. I'm not saying they should give away factories and malls for free but it would make sense to take a hit on profits to attract businesses to the area which would in turn attract employees who would fill the nearby housing developments and cause the price of all real estate in the area to increase.
To be fair, some of the newer smarter developments are doing that, building malls next to the apartments. The problem is, businesses can't run without customers. Kind of a chicken and egg thing.
Which is why attracting industry should be the first priority. Bringing in industrial jobs would in turn bring in employees / consumers who could then support commercial enterprises to serve and support them.
People are quite happy to buy the apartments and continue to live at the factory with friends and party every night and get free food cooked. The apartments are a long term investment. More factories will slowly move to Huizhou when costs in Shenzhen become to high. Only thing stopping them is the bosses wife's want to be near the shops like KK Mall and Mix C. Huawei's new factory in Dongguan has had major problems with this as most management bought the houses in Shenzhen around 2008 and not interested in selling up. Plenty of jobs at Foxconn over the road.
frbird there's already an oversupply of factories and industry, so that won't work. China is on the cusp of becoming a post industrial society, though it will take perhaps 10 years of transition.
Great video I have been wondering about the ghost cities had no idea, freakin crazy, you guys are awesome I have learned more about China in two or three of your videos then I've learned in 40 years of life ✌️
Your videos are fantastic dude, really informative. Not just sort of lame vlogs of some tourist fella, but well educated and informative clips of a foreigners perspective on living in china. Fascinating.
Anyone who has played “Sim City” knows how this is going to end.
Thank you guys so much for these amazing episodes. Love them!
next you have to worry is the structural integrity of those building some might be build with really cheap materials
Pointless Ink I can be sure it’s not built well
We never get tired of the footage, guys, thx for all of it. Herb
Thanks for ur video.The "compensation per floor part" is so accurate.
These videos are massively informative, its fascinating to learn about whats going on in china from this perspective.
one word explains the long term results of this type of investment "pyramid"
Fantastic. Loved it. More Economic type videos please. They are So So Fascinating!!!
Awesome video - thanks guys - very eye-opening.
Chinese Houses are falling apart, bikes also. In Holland, seaclimate, those bikes rust away in no-time.
Takes much longer in Holland than in the South of China due to hot humid climates for bikes to rust.
Great video. I wonder how the future will regard this period of frantic building without sensible restraint.
You guys are brave. Good luck to both of you, great vids!
I'm impressed at the sound quality - Others recording in the comfort of their own rooms usually don't sound this good.
This whole thing reminds me of Dubai. There was once massive construction there around the West Marina Beach area. Dozens of apartment blocks for foreigners who were expected to choose Dubai as their winter residence. When I went back there 3 years later in 2011 all I could see was empty apartment blocks with spider webs here and there at the entrance and an Indian man going around to see if all was still OK...
Alim Iakhin no one wants to live in Muslim country, not even Muslims lol
Just what I was thinking Tanks! This girl won't even travel there! My company has an office there and I refuse to go there! Not happening!!
Dubai is the strangest of places. Been several times and I don't miss it when I leave. I miss my friends, yes, but not Dubai.
Maybe they worship spiders, since they build these big towers for them to live in...?
Oh this is Dubai on steroids man.
I met a young Chinese guy on holiday in Australia recently. He was so proud that China would be taking Taiwan and he believed that China would be taking other countries soon, which I found slightly alarming! The pride and arrogance in him really showed through, as if he was looking over his land already.
My thoughts on these Ghost Cities:
They seem to be located all over China alongside every major city and town. I guess in the future an expatriated (slave) workforce obtained from conquered lands could end up living in them.
Lol before that these Chinese will melt under the nuclear missile due to war 😂😂😂
Great Videos!! Keep it up..... Stay Awesome.... love it!!!
Great video. You guys make a good team.
Same speculation happened in America. And then it crashed in 2008. Millions lost everything. A house is only useful to either live in or rent - if you can get a good tenant. ...
Those, are some big dominoes. On more than one level .
Very interesting video. Thank you!
Nice how you drive around on the bikes and talk about stuff - cool idea
What a sick and messed up world we live in.
perrrry why
I understand not being allowed to renovate like my house someone painted over the hardwood framing put carpet on hardwood floors! I hate it.
man i really really enjoy this segment when you two ride bikes. You should totally do it more often.
Outstanding reports!
Real estate agents sell property on a new or used basis. If you buy an apartment and leave it bare bones, as long as no work is done, five years or so later it's still considered 'New' and therefore more valuble than one that has been lived in, or 'used'.
But it's never been lived in. When Chinese people buy a property the first thing they do is replace the bathrooms, kitchen, everything. They don't like pre-used. If you leave the apartment bare and sell later when the value has increased the prospective buyers will find it more attractive that they can put their own mark on it. If no one has lived in it, it's essentially new.
Depends on where you live. In a market that has low stock that remains true, but where there's plenty of stock it hasn't remained stable.
They are still trying to sell at a high price but in places like my city (Chongqing) many speculators have had to reduce their expectations. There's just too many apartments available for sale, and the market for buyers has shrunk while the stock has increased.
What an utter insanity.
Great video guys. Stay safe and watch your 6.
Interesting topic, thank you.
Wow this can't end well! I'm stunned it's gone on this long... & this is actually way more inhabited then some cities that truly are ghost cities!
interesting viewing. Who does the maintenance on the buildings and upkeep ?
I am assuming no one cares as it's a buyers market and once sold, move on to buying two more apartments etc.
Here in the UK it's a complete reversal to China.
Massive demand for housing but a deliberate lack of housing thus driving up the value of current houses to the point first time buyers cannot afford to buy a house.
Owners a laughing as they are making a mint on renting out houses at a falsely high price.
I have no idea how the future will pan out for housing here in the UK but at some point the pricing WILL have to re-align to a more acceptable level.
The government will not want this as it would put millions of people in negative equity
The massive shortage supply is largely a myth perpetuated by the mainstream media. Where I live in Central London there are a number of empty apartments around me and every man and his dog seems to be bragging about their property portfolios. The ridiculous prices are the result of decades of falling interest rates and cheap money peddled by central banks. It's Ponzi financing basically. Let rates seek equilibrium and prices collapse but the central banks will keep printing and blowing up their balance sheets to prevent this from happening as the only reason this fake economy even has any semblance of being a functioning one is that it is hooked on 0% rates. Essentially the problems that caused the 2008 financial crisis were only papered over with more debt.
Same here in Hong Kong. Deliberate lack of housing to drive up the real estate price
No one does the maintenance. That's why there's so much shit falling apart in china.
Borrow some money and invest then. They're not making any more land in London.
Thanks for a fascinating video.
Bro you guys are OG China, I still come back and watch these and love 'em
Up until a couple of months ago I was living near Tianjin city for almost 3 years. I saw the same thing with all these empty buildings going up everywhere out there. There was even a small "downtown city" built with all the buildings empty. Someone told me it was supposed to be a mini Manhattan replica but i dont know about that. I walked around the empty streets one day with my camera taking pictures. It felt like that Will Smith movie "I am Legend". It was truly a unique experience and really felt like a real ghost city.
Tou guys have a good dynamic
My 15 buildings x 2 units apartment block on the outskirts of Guangzhou is only 15-20 per cent full. Love the serenity!
Enjoying your journey
I'd like to see a follow up in two years.
+Cheng CHENG will do
The Tach doesn't work on 1 bike and the Tach and Speedometer doesn't work on the other bike. The video before this one had these guys in it on the same bikes. The title of that video was about why nothing lasts very long in China. I bought a Chinese motorcycle. It was junk. It looked good but was junk. I had to fix 14 issues before riding it. Problems from cable routing causing the throttle to rev up when making tight left turns to an intake manifold leak that caused the bike to run poorly and not idle. All of the bolt threads fit loosely in the frame and nuts causing a foot peg and kick stand to fall off. When you used the brakes, the tires would slide on the rims and tear the valves out of the inner tubes. Chinese motorcycles make the A.M.F. Harley Davidson's look like the most dependable bikes in the world A.M.F. Harley's were notorious for Oil Leaks, Major Defects from factory and constant breakdowns. But they were still better than my Chinese bike. I bought a VOX (British Brand) Guitar Amp made in China. It had the same failure 3 times in 2 years. I went back to using my over 30 year old American Made Lab Series L7 amp because it was dependable. My Chinese made CARVIN (U. S. Brand Name) 8 Channel Self Powered 1200 Watt PA Head has now had 3 of the 4 power amps fail (proper speaker loading and no abuse or loud volume levels overdriving amps). I bought it because it was a TRUSTED BRAND NAME. I guess I should be happy since I still have 300 watts of the 1200 watts working. Just bought a Low Lying Fog Machine made in China. Wish me luck!
You guys are great. I saw a whole end of town in Yangzhou that was abandoned. It was quite eerie. You are showing the opposite problem, which I had seen a little when I was there.That would have been 2006-2007 when I lived there. Apart from that month in Yangzhou, I lived almost a year in Beijing in Bei Chen ( Olympic Village) and worked mostly at a university in Langfang during the week. Apart from getting sick from the air and water, I loved living there
you guys have experienced so much in your lives it's impressive