The industry that has traditionally powered about a quarter of GDP has been in a downward spiral that policymakers have struggled to halt

All across China, from Beijing in the north, to Shenzhen in the south, millions of newly built homes stand empty and unwanted. There were nearly 391m sq metres of unsold residential property in China as of April, according to the National Bureau of Statistics. That is the equivalent of Manchester and Birmingham combined – and then some – sitting as vacant, unwanted property.

This glut of idle property has caused a headache for the government, shaken the world’s second largest economy and raised tensions over the purpose of housebuilding in a nation where property investment had been viewed as a safe bet.

Since the real estate sector was sent into a tailspin in 2020, caused by the pandemic and a sudden regulatory crackdown, the industry that has traditionally powered about one-quarter of GDP has been in a downward spiral that policymakers have struggled to halt.

The crux of the problem is that, with shaky faith in the economy and big property developers failing to deliver on paid-for apartments, potential homebuyers are keeping their money out of the market.

  • ASeriesOfPoorChoices@lemmy.world
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    5 months ago

    you say “property should not be an investment”.

    that’s lovely. that’s fine.

    He didn’t disagree with you, so stop acting like he did.

    He said that it’s one of the few / the easiest way for them to “invest” their money. Not save.

    If your entire argument is that the Chinese stock market is as easy to access and use as the housing market, I’d want you to be very sure, and clear. Including bonds.

    Ultimately, it looks like you just want to fight, but no-one is fighting you.

    Small dog syndrome.

    • zephyreks@lemmy.ml
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      5 months ago

      I, too, like evaluating investments based on “how easy is it for me to make” rather than “what is the risk/return.”

      • ASeriesOfPoorChoices@lemmy.world
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        5 months ago

        you do? I’m very happy for you then. no-one else is evaluating anything here, so I’m glad you’ve found something to occupy yourself with.

        • zephyreks@lemmy.ml
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          5 months ago

          Is this a common thing in the US? Evaluating investments based on how easy they are to make, independent of their PnL?

            • zephyreks@lemmy.ml
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              5 months ago

              You claimed that real estate is one of the easiest ways for people to invest their money.

              • ASeriesOfPoorChoices@lemmy.world
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                5 months ago

                nope, I haven’t claimed anything.

                you might be thinking of someone else. You can tell when you’re communicating with different people on the internet by the name that is above the text they’ve written.

                in any case, you should reread my comment a few back which addresses the subject of “easier”.