Real State crisis in China - homes supply exceeds wildest possible

[paxmao]

https://www.scmp.com/business/china-business/article/3275381/disappointing-chinas-us42-billion-plan-buy-unsold-homes-rolls-out-slowly

Even China's 1.4 billion population can't fill all its vacant homes, former official says

Who would ever think that China might have too many empty homes? Well, it is here, particularly in some towns (mid-size for China standards) have overbuilt well beyond anything reasonable.

As of the end of August, the combined floor area of unsold homes stood at 648 million square metres (7 billion square feet), the latest data from the National Bureau of Statistics (NBS) show.

If you think 80m2 for a 2 bed average home, this would be 8 million homes empty and with little realistic probabilities of being bought by anyone. The government has put a plan in place that looks pretty much like a bail-out by buying those homes with public money and transforming them in social housing. The outcome cannot be other than a crisis and it is a deep one that is going to drag China for quite a while.

On the plus side for China, it might increase somewhat the population growth.

https://www.scmp.com/business/china-business/article/3275381/disappointing-chinas-us42-billion-plan-buy-unsold-homes-rolls-out-slowly

[Akbarkoe]

That this is a problem from last year for China, where their people are no longer able to buy houses with installments, I don't understand how China's economy is in the average amount for each community, but there are indeed too many houses built.
I don't really care about the size of the housing they build, but is it logical enough that the average salary there can pay for a house that can't take a very long time to 20 years or more installments with a hefty interest, for Chinese people who are growing in financial management thinking, I think there will be many people who don't want it.

The population growth there is already very much, Chinese society has a very high ranking as the country with the largest population, do they need to do it again?

[Hispo]

Makes me wonder if the Chinese Communist party would be willing to make living conditions more desirable in their country so skilled foreigners would move to China to live and work in the long term, that could be a solution for the house market there and attracting human talent to their economy, though knowing how closed-minded and strict the CCP is when comes to ideology and economics I doubt they would even think in laxing their authoritarian way of ruling the country in order for them to increase the economical state of their housing market.
Also, because of the size of those houses and apartments one needs to keep an eye on the actual quality of the building materials being used in China, I have seen some crazy videos on YouTube on how building contractors save as much money as possible by using bottle steel for their projects and the thinner drywall they can find, among other things. Not something the average foreigner could tolerate.

[telesnake]

Makes me wonder if the Chinese Communist party would be willing to make living conditions more desirable in their country so skilled foreigners would move to China to live and work in the long term

That would make sense, but China is a developing country and way too racist to allow a large foreigner population or give foreigners any rights at all.  Meanwhile, the USA has a shortage of 10 million houses yet we bring 3 million migrants a year including 80,000 Chinese.

We live in a parody.

[Cartola]

China is pretty aware about that and that "one child only" policy do not exist anymore.

Actually, the government is encouraging (for this and also other reasons) the birth rate growth.

https://www.reuters.com/world/china/how-china-is-seeking-boost-its-falling-birth-rate-2023-01-17/

https://www.reuters.com/world/china/china-announces-measures-boost-births-2024-10-28/

https://www.nytimes.com/2023/02/26/world/asia/china-birth-rate.html

[Kickflipp]

Have you seen them at home? They live on top of each other in some cities, the houses are huge, the apartments are small, the conditions are terrible. Like a kennel for dogs.

[paxmao]

Makes me wonder if the Chinese Communist party would be willing to make living conditions more desirable in their country so skilled foreigners would move to China to live and work in the long term

That would make sense, but China is a developing country and way too racist to allow a large foreigner population or give foreigners any rights at all.  Meanwhile, the USA has a shortage of 10 million houses yet we bring 3 million migrants a year including 80,000 Chinese.

We live in a parody.

Kind of, I mean, the US has plenty of space you know,... I mean, if you were saying we cannot have any more people in Luxembourg or in Manhattan I would second that thought, but the only reason for not having more housing is not approving the permits or people not willing to live in certain places. Now that you can work remote, there is no reason to cram yourself in a city.