50 Million Empty Homes In China, Third-Home Purchases Soar

There are more than 50 million vacant homes in China. An amazing 69% of recent purchases are second or third homes.

Home-buying speculation is rampant in China. Over a fifth of China’s homes are empty. That’s 50 Million Empty Apartments.

Soon-to-be-published research will show roughly 22 percent of China’s urban housing stock is unoccupied, according to Professor Gan Li, who runs the main nationwide study. That adds up to more than 50 million empty homes, he said.

The nightmare scenario for policy makers is that owners of unoccupied dwellings rush to sell if cracks start appearing in the property market, causing prices to spiral. The latest data, from a survey in 2017, also suggests Beijing’s efforts to curb property speculation -- considered by leaders a key threat to financial and social stability -- are coming up short.

Shop Till You Drop

Pure Speculation

An amazing 69% of recent home purchases have been second or third homes.

A housing bust is coming and it will hit China hard.

Mike "Mish" Shedlock

Comments (13)
Bam_Man
Bam_Man

They sure do like to gamble.

Stuki
Stuki

More than nuclear explosions, aids, wars, plagues, Scary Muslim Virgins and any other supposed ills; the banksters getting the average idiot to fall for the childish drivel that a roof over ones head is some sort of "investment," is the single greatest calamity to ever befall humankind.

Resulting in a virtually endless supply of zero value add, utterly incompetent at anything productive nor valuable whatsoever idiots; lining up to pump their fists in illiterate support of whichever pathetic tinpotentate-wannabe promises to harass, rob and steal from their neighbors, in order to increase the idiots' poppeti vaijues. While also promising to do all he can to keep as many as possible homeless, hence desperate enough to accept grossly overpaying for the cheering, incompetent idiots' cheaply constructed, trashy, roach infested shacks. All while the idiots themselves run around flaunting their complete, undifferentiated idiocy; by genuinely believing this has anything whatsoever, even in the slightest, to do with what they are told is called "capitalism," "freedom" and "markets."

Kinuachdrach
Kinuachdrach

Second & third homes? I can't help wondering if we are getting confused by cultural differences?

Pure anecdote -- some Chinese friends say that many Chinese people do not like the idea of a mortgage. Instead, they borrow money within the family, rather than from a bank. Perhaps those apartment purchases for sons & daughters are being classified as second & third homes? After all, if someone in the family has cash, all this practice does is cut out the banker middleman.