China real estate crisis: Buy a house and get a gold bar! No Bitcoin unf!

[bitgolden]

It's really not reasonable to do marketing and expect everything to change. Reality is that there is a limited amount of people with money that can buy a house, most people in China do not have enough money to buy a house, and the ones who can already did, so when these companies made so much more than what was needed or even what was being affordable, they bankrupted, gold bar doesn't make sense in that marketing sense.

Maybe some rich people could buy in bulk, surely there are people who can buy like a thousand houses and rent them out for income, but they already did as much as they want, so not many houses are being sold.

Construction should have been slower, they like fast works, but this wasn't something they should have been fast on and that is why it doesn't feel like a good idea. They will not be saved easily, they just have to wait with the current situation, let the country grow and they will end up getting a greater result eventually when things are better.

[franky1]

the over supply was a itchy trigger finger plan to build more homes in anticipation of couples having more children so needing more then a 2 bedroom home(china changed its 1 child policy to 2 and then later 2 children to 3..)
however those people whom are of child bearing age are already indoctrinated into thinking 1 child is healthy for the family and society and so dont push out more kids to need to then upgrade to a bigger house/apartment

so it then becomes the anticipation of the next generation that are taught that 2-3 kids are fine and it will be those (now late teens) that will couple up and settle down and have 2-3 kids to fill the new apartments. however that is not today.

so they simply built too soon not realising their 1 child policy indoctrination of the last generation would work so well that even those with one child now still wont want 2-3 kids.

there was alot of other economics too about china hoping the middle east(UAE) would buy these properties and then rent/lease them out as landlords to these anticipated couples wanting to start families.. but even that money didnt come through because the middle east ran their own numbers and timelines and seen china built too soon

there eventually will be demand for the supply, its just a few too many years too soon. UAE wont want funds tied up in property for 3-10 years when the property market works best on a same year flip in most cases (unless the property exists in a tourist/high employment zone(which those properties are not)) when inflation is low compared to other countries, they only want to buy and sit on empty properties long term when inflation is high

[stompix]

there was alot of other economics too about china hoping the middle east(UAE) would buy these properties and then rent/lease them out as landlords to these anticipated couples wanting to start families.. but even that money didnt come through because the middle east ran their own numbers and timelines and seen china built too soon

Franky:
- you can't buy land in China, all land in China is owned by the state
- foreigners can buy a property in China only after residing in the said province (with only two exceptions, Guangxi and Inner Mongolia which are autonomous) for 12 months
- you are limited to one property tied to the prefecture-level where your residence permit is issued
- you can't rent your property if you're not a Chinese resident, you're breaking the law

So if you think China has ever tried to encourage foreigners to buy real estate you're again mistaken, as usual!

[WillyAp]

So if you think China has ever tried to encourage foreigners to buy real estate you're again mistaken, as usual!

Sometimes he's right. No one is always correct.
China also muddles its credit worthiness https://archive.ph/lS46V
Original: https://www.bloomberg.com/news/articles/2024-09-12/china-detains-investment-bankers-takes-passports-in-graft-sweep

China Detains Investment Bankers, Takes Passports in Corruption Sweep

    State-owned brokers have made staff hand in travel documents
    Regulators are scrutinizing IPOs, capital raising activities