Monday, March 4, 2013
60 Minutes Covers the China Real Estate Bubble
Covers the ghost cities. Claims 12 to 24 new cities being built every year. Malls with make-believe brand signs. Multiple classes will be wiped out when the bubble bursts: multigenerational family savings, construction workers. Shanghai average apartment costs 45 times average salary. The fake Manhattan in the port city of Tianjin has ceased development. City officials claim they stopped because they want to put on all the facades at once so they match, but workers say otherwise. First sign of the crash is the migrant workers go home and in this development, at least, they have. Price declines have led to demonstrations outside developers. The head of Vanke worries that a real burst could lead to an Arab Spring situation.