China’s Property Crisis
China’s monumental property crisis is expected to worsen, as sales of new homes plummet and developers scramble to find funds to complete projects.
Meanwhile, Wall Street Journal China Bureau Chief Jonathan Cheng recently visited an abandoned ghost town in Shenyang City, built by the Greenland Group, to explain how China’s real estate slump has become a major headache for the government.
What Cheng found, for starters, was an unoccupied site of 100 luxurious homes built in the style of European mansions. “And this particular compound is one of just many all across China–abandoned, empty, a headache for China’s policy makers,” he said. And the fact that real estate giant Evergrande was recently forced to liquidate because more than 50 developers have defaulted on their debt in recent years spells doom for the Chinese economy. Here’s Cheng’s report.
