(Image source: Randomwire.com

 

 

BY ZACH TOOMBS

 

 

Half of the world’s skyscrapers currently under construction reside in China. At first glance, it’s a sign of rapid economic growth. But, Al Jazeera reports, the real story is beneath the surface — in China’s ability to fill these new spaces.

 

“In the southern Chinese boomtown of Shenzhen, there are plenty of new buildings.”

“Throughout China, a glut of new commercial space is waiting for the commerce to fill it, pointing to a classic bubble waiting to burst."

 

Only 20 percent of the building in which Al Jazeera shot that video is occupied. Although China keeps details on the issue scarce, reports have found similar scenes in many skyscrapers along China’s coastline and — as China’s NTD Television shows — in modern-day ghost towns across Mongolia.  

 

“There is a sense of inevitability about the crash of real estate prices in Ordos. That city is widely known as China’s ghost town, for its brand new empty office buildings, shopping plazas and apartments.”

 

Adding pressure to a potential housing market bubble in China is a population bust — a result of the “one-child” rule put in place in 1978. Investor's Business Daily reports:

 

“China will lose about 45 million people aged 15-24 — prime working age — over the next decade, a more than 20% decline. In short, China's running out of workers just as its population turns old... It's a recipe for social unrest and economic crisis.”

 

Economic concerns such as those have prompted new discussion in China over political reform. In a press conference earlier this month, Chinese premiere Wen Jiabao (Jhow-bow) said the nation would lower its goal for growth for the next year to lower the risk of over-expansion.

 

“China pared the nation’s economic growth target to 7.5 percent from an 8 percent goal in place since 2005, a signal that leaders are determined to reduce reliance on exports and capital spending in favor of consumption.”

Empty Skyscrapers Could be Sign of Economic Trouble in China

by Zach Toombs
0
Transcript
Mar 19, 2012

Empty Skyscrapers Could be Sign of Economic Trouble in China

(Image source: Randomwire.com

 

 

BY ZACH TOOMBS

 

 

Half of the world’s skyscrapers currently under construction reside in China. At first glance, it’s a sign of rapid economic growth. But, Al Jazeera reports, the real story is beneath the surface — in China’s ability to fill these new spaces.

 

“In the southern Chinese boomtown of Shenzhen, there are plenty of new buildings.”

“Throughout China, a glut of new commercial space is waiting for the commerce to fill it, pointing to a classic bubble waiting to burst."

 

Only 20 percent of the building in which Al Jazeera shot that video is occupied. Although China keeps details on the issue scarce, reports have found similar scenes in many skyscrapers along China’s coastline and — as China’s NTD Television shows — in modern-day ghost towns across Mongolia.  

 

“There is a sense of inevitability about the crash of real estate prices in Ordos. That city is widely known as China’s ghost town, for its brand new empty office buildings, shopping plazas and apartments.”

 

Adding pressure to a potential housing market bubble in China is a population bust — a result of the “one-child” rule put in place in 1978. Investor's Business Daily reports:

 

“China will lose about 45 million people aged 15-24 — prime working age — over the next decade, a more than 20% decline. In short, China's running out of workers just as its population turns old... It's a recipe for social unrest and economic crisis.”

 

Economic concerns such as those have prompted new discussion in China over political reform. In a press conference earlier this month, Chinese premiere Wen Jiabao (Jhow-bow) said the nation would lower its goal for growth for the next year to lower the risk of over-expansion.

 

“China pared the nation’s economic growth target to 7.5 percent from an 8 percent goal in place since 2005, a signal that leaders are determined to reduce reliance on exports and capital spending in favor of consumption.”

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