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
No. 1-11
everything
everything

I know someone who owns a couple of them and leaves them empty. They don't even live in China, they live in the U.S. because they found sugar. They don't pay property taxes?, and would rather not rent for many reasons, protecting the investment, dealing with rental tax, bad renters, who knows, I'm sure the reasons are good to want to buy apartment but leave it empty vs. trying to get an income from it. I know this person is a clean freak, they would not risk someone unclean going into their apartments.

Kinuachdrach
Kinuachdrach

"Grossly insensitive"? Please let's have more gross insensitivity, aka truth. And if some snowflakes can't handle the truth, let them suffer the consequences.

President Trump said nothing about the competence of the response to the fires. He focused "like a laser" (as Billie Clinton used to say) on the conditions which created the need for a response.

Forest specialists have been talking for years about mis-management of forests -- mismanagement mainly driven by idiot urban "environmentalists" who know not of what they speak. The deaths & destruction in these fires can be laid directly at the door of foolish "environmentalists". Maybe once the snowflakes have finished melting, we can finally get serious about how to manage forests, especially in the wildland/urban interface.

Riviera
Riviera

I think this is really a very big big risk for China economy, especilly under trade war. Hah

Advancingtime
Advancingtime

Note that in China most apartments are sold by the developer at the "roughed in" stage with no interior. The importance of the housing market in China's economy should not be underestimated, this is where almost 75% of the country's household wealth is stored and it is deeply interwoven with shadow banking.

A close look at housing in China and the customs under which deals are completed will give Americans some real surprises. After reading the article below you may question both the quality of how well these housing units have been finished and how many may never get "finished" or occupied.

Stories