Thursday, December 8, 2011

Prices down 60% in Kangbashi, Near Ordos

Satellite Pictures Of The Empty Chinese Cities Where Home Prices Are Crashing
If demand is zero, the bottom price should be something closer to zero, unless someone can invent some other economic use for these places. Long term warehousing?
The bigger issue, however, will be if declines reach the major cities. "The degree of price declines you are seeing in Kangbashi give a preview of what you will see in major cities. I would expect price declines of 20% nationwide over the next 1-2 years," Tulloch said.
Tulloch points to plunging transaction volume as evidence of a property slowdown. His firm expects a hard landing, with China slowing to zero GDP growth for several quarters.
Anything below 9% is disaster for China. 0% would be devastating.

1 comment:

knowledge is power said...

How do you find the numbers on places and real estate in china, especially with the goverenment being able to surpress them or minupulate them and all? More importantly if the real estate collaspes the economy and markets will react negatively which will likely effect world markets. how can i montior the situation?