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Has China’s housing market tanked?

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  • Опубліковано 7 лип 2023
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    For more on the Evergrande crisis: inks.tn/8e5d7a
    China’s property sector has been a key driver of the country’s economic growth since the 1990s. During the high-growth period, the sector brought in huge revenues and employment that contributed to 30 per cent of China’s GDP. But between 2020 and 2022, China’s housing market suddenly experienced an unprecedented crash; top developers like Evergrande went into default and collapsed, while homebuyers were left in limbo after indebted developers ran out of funds to complete construction. So, how did China’s housing market go from boom to bust?
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КОМЕНТАРІ • 709

  • @kelvinjohnson4
    @kelvinjohnson4 11 місяців тому +343

    In my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living

    • @williamsbrown4026
      @williamsbrown4026 11 місяців тому +6

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      @LionTowercoporation 11 місяців тому +8

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    • @KelvinWallace
      @KelvinWallace 11 місяців тому +4

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      @KelvinWallace 11 місяців тому +3

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  • @KevinNguyen-ih3hk
    @KevinNguyen-ih3hk Рік тому +67

    When you spend more than 50% of income just to pay mortgage, you are mortgage slaves. Cannot afford losing your job or being sick. That is a lot of stress!

    • @cooper1819
      @cooper1819 Рік тому

      Not issue since you are paying yourself, or saving for an asset that value appreciates over time. Pay for 20 years and get to stay for next 50 years or collect rent or reverse mortgage for retirement. Else how do you retire early?

    • @pkalnin1
      @pkalnin1 Рік тому +3

      True, but the returns on investing in property have been MUCH better than what the alternatives were: 300%. Welcome to 21st C America.

    • @panoptijohn
      @panoptijohn Рік тому +5

      @@cooper1819 The value doesn't seem to be appreciating. In fact, it's doing quite the opposite. That's the issue.

    • @cooper1819
      @cooper1819 Рік тому

      @@panoptijohn Housing value looks very long-term, by decades. See even after Japan's property crash from 80s, still not impacted because are mainly ownership rather than rentals. So there is less volatility.

    • @cooper1819
      @cooper1819 Рік тому

      @YoDaddi Nah, got no more mortgage. Am on FIRE. just wasting time putting up posts when not on vacation. 😜

  • @Evelyn32423
    @Evelyn32423 8 місяців тому +94

    Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

    • @Hudson367
      @Hudson367 8 місяців тому

      If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.Read more

    • @Hazel5063
      @Hazel5063 8 місяців тому

      Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.Read more

    • @Scarlett34568
      @Scarlett34568 8 місяців тому

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      @Hazel5063 8 місяців тому

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      @Scarlett34568 8 місяців тому

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  • @flyboyone
    @flyboyone Рік тому +204

    Australia has this Right. Developers can not access even the 10% deposit buyers pay in to the Trust account of their lawyers until the property has achieved Local Council Occupancy requirements.

    • @HKim0072
      @HKim0072 Рік тому

      Australia has it right for whom?
      The goal of CCP China real estate isn't for the protection of the buyer. It's for the protection of banks, developers and government. The individual means nothing for the CCP. It's role is to fill the state's need.
      Using western examples and applying them to CCP China is just silly.

    • @definat111
      @definat111 Рік тому +3

      Are you sure about this number of developers have gone bust in Australia taking deposits not having proper insurance and don't even get started on the defective appartment blocks in all major cities of Australia

    • @flyboyone
      @flyboyone Рік тому +15

      @@definat111 I am 100% sure. It is legally impossible to drawdown on Off the Plan purchasers'10% deposit with out a Certificate Of Occupation.
      I have developed/built over 250K sqms of apartments and hotel ($3.74 billion in value) within 4 kms of Sydney Tower, Pitt St Mall.

    • @wzk921109
      @wzk921109 Рік тому +2

      Australia has much more regulations, both banking and construction.
      Still lots of developer/ builder bankrupt, some people left in difficult places.

    • @CodeMeat
      @CodeMeat Рік тому +1

      Trust me, the Chinese situation is way better than the Aussie and the dying SK. If the RBA continues to raise the cash rate, the property boom madness will turn into a rental crisis, or it already is. I think another WA builders had gone liquidation this Wednesday, and the worst is yet to come. Basically we all gonna be fked in the post-pandemic world because the politicians wanted a war rather than cooperation.

  • @Raymondjohn2
    @Raymondjohn2 11 місяців тому +214

    Some economists have projected that both the U.S. and parts of Europe could slip into a recession for a portion of 2023. A global recession, defined as a contraction in annual global per capita income, is more rare because China and emerging markets often grow faster than more developed economies. Essentially the world economy is considered to be in recession if economic growth falls behind population growth.

    • @usieey
      @usieey 11 місяців тому +3

      My main concern now is how can we generate more revenue during quantitative times? I can't afford to see my savings crumble to dust.

    • @maga_zineng7810
      @maga_zineng7810 11 місяців тому +3

      It's a delicate season now, so you can do little or nothing on your own. Hence I’ll suggest you get yourself a financial expert that can provide you with valuable financial information and assistance

    • @Mohaimam316
      @Mohaimam316 11 місяців тому +2

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    • @usieey
      @usieey 11 місяців тому +2

      How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings?

    • @Mohaimam316
      @Mohaimam316 11 місяців тому +2

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  • @Miss_Wonderful1
    @Miss_Wonderful1 Рік тому +202

    The policy of paying before having a house built is common in my country too, and it never ends well. For one reason or another, the developers disappears (I guess not in some horrible, remote shack), leaving penniless people and unfinished buildings.

    • @oldcat1790
      @oldcat1790 Рік тому +25

      it's a matter of laws; in some countries people can pay before getting a house, but developers get the money only after actually finishing it: until then the money remains on a special bank account, and will be refunded if the house is never finished

    • @ArariaKAgelessTraveller
      @ArariaKAgelessTraveller Рік тому +18

      In The past it's called
      "Paying for fruit from a tree which hasnt bore a fruit"
      Which has been illegal even from the Roman Era

    • @anthonyfam5469
      @anthonyfam5469 Рік тому +1

      What country you live in ?

    • @ykmnkmi
      @ykmnkmi Рік тому +7

      @@anthonyfam5469in Kazakhstan we have government backed company, which is building things over 10+ years. I got one.

    • @simplyyellow6240
      @simplyyellow6240 Рік тому +3

      atleast you still have the land.

  • @taxol2
    @taxol2 Рік тому +8

    It’s been tankinng for awhile, but a lot of people still denying it. Well they can’t deny it now since Evergrande gone bankrupt and Country Garden defaulted

  • @bonglee6696
    @bonglee6696 11 місяців тому +5

    China has been building houses/apartments that were too expensive for home buyers to pay for. The buyers counted on that there would be people who would pay even higher prices. This bubble grew bigger and was bound to burst sooner or later.

  • @WaylonFlinn
    @WaylonFlinn Рік тому +33

    You failed to mention that much of recent demand was speculative. People bought second and third homes that were never finished that they never intended to live in, in the hopes that they could resale for more later. Once prices stop going up, people not only stop buying those extra homes, but also start flooding the market with homes they don’t need in order to get out before a crash. This then causes the very crash they hoped to avoid. The only way China will achieve “price stabilization” is by forbidding people to sell their unused extra homes.

    • @dons123111
      @dons123111 Рік тому +2

      They bought 2nd and 3rd ones during the bubble, meaning speculating that prices would continue upwards. Same thing happened in the US in 2007.

    • @Mega-zi7ys
      @Mega-zi7ys Рік тому +3

      Correct and they're doing same thing in other countries causing same problems... greedy speculators

    • @googane7755
      @googane7755 Рік тому +10

      It's why housing shouldn't be used as investment. If you do not intend to live in it then you shouldn't be allowed to buy it. Speculative investment on housing is one of the worst poisons in the economy.

    • @JudgeyJudgeyable
      @JudgeyJudgeyable 11 місяців тому

      And in addition to prices dropping, I think the lock down had people nervous and less willing to spend/invest

  • @sirjcc
    @sirjcc Рік тому +10

    Another problem this video doesn't mention is store of value. A LOT of chinese dump their entire life savings into housing instead of the stock market like in the USA. This messes with what is "true demand" vs speculation and will make housing prices even more volatile

    • @dons123111
      @dons123111 Рік тому +1

      Rght, the real lack of investment in local markets does not help employment diversity, all your eggs in one basket when the bubble bursts is a GDP killer.

  • @___beyondhorizon4664
    @___beyondhorizon4664 Рік тому +16

    I first learned about the Evergrand news while I was traveling in Sharm El-Shake, Egypt in September 2021. I have been traveling for almost 3 weeks, disconnected from the media on my journey. Finally got a decent resort hotel with BBC, suddenly this news about the home buyers protests. It's predictable that when you pay large deposit for something you cannot have, and lack of rules and regulations like china, corruptions, mishandling funds is bound to happen. They said men cannot get a wife without an apartment in China!

    • @youarebeingtrolled6954
      @youarebeingtrolled6954 Рік тому

      Your mom also got a decent hotel with BBC 😂😂

    • @ssuwandi3240
      @ssuwandi3240 Рік тому

      Abs asia men don't get splurged on fomo backpacking or sabbatical but get on the saddle and their life purpose

  • @martinleung212
    @martinleung212 Рік тому +11

    When real estate price goes beyond the earning capability of the general public, this happens. This is the same all the world over, not only in China.

  • @edwardv1219
    @edwardv1219 Рік тому +32

    Between a crashing demography, killing future demand in an over built market. And a model based on never ending value appreciation. There is no demand as people won’t borrow if the house values are over priced and there is no longer a guarantee of future value increases.

    • @youarebeingtrolled6954
      @youarebeingtrolled6954 Рік тому

      So cheaper housing bad ? 😂😂😂 ok

    • @damo87araimo
      @damo87araimo Рік тому +1

      @@youarebeingtrolled6954 We live in an inflation reliant economy. Even though depreciation is awesome for a buyer, inflation is required to help repay debt. The money masters will counter with everything to continue inflation = higher prices.

  • @ErnestJay88
    @ErnestJay88 Рік тому +6

    in short sentence :
    *Too much supply, not too much demand.*

  • @fj418
    @fj418 Рік тому +38

    It's not because of the macro population trend - it's not like China's population has suddenly dropped - rather it's a combination of the state of the economy, balance sheets of developers, and the slow implosion of the giant price bubble built up over the last 30 years.

    • @TheMo8ius
      @TheMo8ius Рік тому +1

      The macro population trend will have some effect here because investors are coming to grip with the fact that there is no longer an expectation that there will be a continually growing source of organic housing demand, but in fact a decades long, maybe even century long decrease.

    • @joelbeeby866
      @joelbeeby866 Рік тому

      @@TheMo8ius china is still relatively under-urbanised, there should still be some organic demand in the medium term

    • @dons123111
      @dons123111 Рік тому

      Everything matters in economics, so indeed the depopulation could cause over speculation when people are making loads o $ in the bubble.

    • @JT-sr2pl
      @JT-sr2pl Рік тому

      Everyone who wants to migrate to Cities, already have.

  • @karthur3421
    @karthur3421 Рік тому +9

    to me it feels like it has reached saturation in a very abrupt pace, i feel that the boom before this was way unnatural, and many developers jumped on the bandwagon, only to lose in this game of musical chair, which was bound to happen.

    • @demonvictim
      @demonvictim 11 місяців тому

      The thing is that everyone knew this was unsustainable ever since ghost cities started popping up unnaturally fast. In most of America ghost cities can be equated to a major manufacturer leaving town so everyone moves away slowly. These ghost cities were just built dumped and never lived in so it never used its value as a building.

  • @dnguyen787
    @dnguyen787 Рік тому +4

    One of the main problems is the developers were so greedy and irresponsible!!😮

    • @Mega-zi7ys
      @Mega-zi7ys Рік тому +1

      Can't blame the developers only.. it's the greedy buyers who enabled the greedy developers. Go to other countries see what those same greedy speculators are doing to house prices elsewhere.
      Many who truly need housing cannot afford them because greedy speculators hoarding them. Same ppl.

  • @jennyohara4011
    @jennyohara4011 Рік тому +25

    Until I see a tent city in China i wont worry too much

    • @qake2021
      @qake2021 Рік тому +6

      👍👍👍😃😃😃😃😃👏👏👏👏

    • @wynn3077
      @wynn3077 Рік тому +7

      But you by your own words haven’t been to China yet, so how will you know.

    • @diegoantoniorosariopalomin9979
      @diegoantoniorosariopalomin9979 Рік тому

      I would. By that point a región Is basically beyond saving

    • @Mr.Patrick_Hung
      @Mr.Patrick_Hung Рік тому +12

      @@wynn3077 I live in China and have never seen an American style homeless tent city. So I am not too worried.

    • @wynn3077
      @wynn3077 Рік тому +4

      @@Mr.Patrick_Hung They aren’t made of tofu like some Chinese apartments 😂

  • @MasTommy21
    @MasTommy21 Рік тому +6

    Why is the youth unemployed if they said the productive work force is shrinking?

    • @dzcav3
      @dzcav3 Рік тому +2

      The economy is shrinking faster than the work force.

    • @leanlifer
      @leanlifer Рік тому +2

      Low skilled work force is shrinking, but “high skilled” work force are growing fast.
      There are 10 million 2-year and 4-year college graduates each year and many of them don't want jobs in manufacturing and service sector.

  • @saifchowdhury3581
    @saifchowdhury3581 11 місяців тому +2

    They over-extended themselves. Instead of taking money for one project and using it in that project, they went on to spend the money on 5 new projects.

  • @rapture1949
    @rapture1949 Рік тому +3

    That's when you have a dictator 😂

  • @eddieleong6490
    @eddieleong6490 Рік тому +8

    China is in a No-Win situation....sale of land funds the Provinces, Cities, Towns and Wards. Real estate forms a sizeable portion of GDP and hence employment. With real estate stagnating or even shrinking due to bankruptcies, the GDP must fall...a Red Line in itself. I cannot see a solution.

    • @paulconner4614
      @paulconner4614 Рік тому +1

      More than likely at some point they will shift to a property tax model to fund the local governments so they are funded based on the current base versus future growth.

    • @MyMovie5858
      @MyMovie5858 Рік тому +4

      China local government needs to get away from relying on property selling and transitioning towards a tax and service oriented model to fund the government operations. It is not going to be easy for sure.

    • @mrx2062
      @mrx2062 Рік тому +1

      @@MyMovie5858 Yes, but then the people may wonder why they actually have no real say in political matters when they have to pay for all of that. No taxation without representation.

  • @frank88ster
    @frank88ster Рік тому +3

    Shocking and shoddy builds with floors giving way with big holes to lower floors means every build cannot be safe for dwelling. No insurance companies will back them.

  • @MahendraS-mm6hj
    @MahendraS-mm6hj Рік тому +11

    Use a building for costly crop fruits medicine plants etc. It's a vertical farming.

    • @marsz386
      @marsz386 Рік тому +2

      Hard to make return of investment from that.

    • @TitusAzzurro
      @TitusAzzurro Рік тому +1

      You assume they have the right plumbing for irrigation; the load bearing necessary to sustain thousands of tons of soil, and the willingness to pay for energy intensive lighting.

  • @randomtraveller8116
    @randomtraveller8116 Рік тому +2

    He bankrupted tens of thousands but he still remain being a billionnaire. What a joke.

  • @ginn2108
    @ginn2108 Рік тому +4

    This system also caused the creation of ghost cities and abandoned and incomplete housing projects

  • @tschoong3897
    @tschoong3897 Рік тому +3

    There is not an overall planning to look at the total demand and supply, and this is causing the housing problem.

  • @kianh1903
    @kianh1903 Рік тому +6

    Shud watch out for extreme huge private housing development & use the strict rule to control overstretching of financial abilities of such companies.

  • @MrBlack31695
    @MrBlack31695 11 місяців тому +3

    Never buy, just break in and live free. It's ghost city so no one will notice you're there. Just keep a look out. Lay low

  • @Truth4Freedom
    @Truth4Freedom Рік тому +2

    Greed full stop and the herd driven itself to the cliff.

  • @fajarkurniawan9434
    @fajarkurniawan9434 Рік тому +10

    the idea of buying something that is not yet created.
    so it's the definition of "Trust Me Bro..." marketing

  • @smallwhitebug7566
    @smallwhitebug7566 Рік тому +37

    population is falling, disposable income stagnant, youth unemployed 😮

    • @andia968
      @andia968 Рік тому +1

      what they mean by youth is 16-22 people of high school and college age.also lockdown has been lifted now , the number is going down

    • @Hkchinese888
      @Hkchinese888 Рік тому +4

      Export shrink
      Wages reduce
      Unemployment rate spike

    • @davidk.d.7591
      @davidk.d.7591 Рік тому +3

      Feels very Japan like honestly. I hope they find a way to come out of it

    • @tranducanh-ok
      @tranducanh-ok Рік тому

      Protest 🪧 later

    • @panoptijohn
      @panoptijohn Рік тому +1

      @@andia968 Is it? It seems to be a severe structural issue. Also, the figure only includes those not currently enrolled in high school and college.

  • @fohhee
    @fohhee Рік тому +8

    Well the government allow it so......

    • @wynn3077
      @wynn3077 Рік тому +4

      Now you know why they became rich.

  • @ercushkakulmetov7458
    @ercushkakulmetov7458 Рік тому +6

    Boom and bust cycles are just capitalism

    • @jakw97
      @jakw97 Рік тому

      Only one problem, the chinese housing market is not based on market principles. Its state controlled, demand for state products and state owned loans could go to 0 if you lose sight of the real market.

  • @user-ye5xe5pp3c
    @user-ye5xe5pp3c 5 місяців тому +1

    Houses are built to be used to live, not to be used to play money games. But it seems that many people likes to do the opposite

  • @DanBurgaud
    @DanBurgaud Рік тому +8

    Mainland China has too much housing while HK has too little.

  • @quyngo8203
    @quyngo8203 Рік тому +6

    Sounds like a ponzi scheme

  • @poopermoodieisgay2131
    @poopermoodieisgay2131 Рік тому +2

    It was a bubble similar to that of Japanese and the USA previously. The burst has burst.

  • @markmk44
    @markmk44 Рік тому +21

    As usual Colliers is always optimistic .. I think the correction will be deep.. and may take years to stable .. separately Chinese have also ‘exported’ their pre sale practice to neighboring countries n these countries will also be facing a property correction due to the Chinese ‘demand’ that has now tapered off .. the ‘tap’ has just stopped on properly markets everywhere .. at least for the next few years ..

    • @youarebeingtrolled6954
      @youarebeingtrolled6954 Рік тому

      Aka AU UK USA CAN all getting corrected

    • @damo87araimo
      @damo87araimo Рік тому

      @@youarebeingtrolled6954 AU = Australia? What Australia are you living in? Prices still going up.

  • @Indian_Girl_Aarini.
    @Indian_Girl_Aarini. Рік тому +108

    It's shocking how China and India are just so strikingly in contrasting. On one hand they have an abundance of unoccupied buildings (ghost cities is what some people calls it). In fact a few thousand of those cities already. On the other hand in India there is hardly any buildings and is filled with sIums everywhere with no toIiets. USA is in a similar position to lndia with their amounts of homelessness now living in what are called "the ghetto", "hoods" and "projects".

    • @Indian_Girl_Aarini_
      @Indian_Girl_Aarini_ Рік тому +9

      It's like a guy with 15 supercars compared to a guy with a wheelbarrow

    • @FilesdocumentsAndreposit-kr3vb
      @FilesdocumentsAndreposit-kr3vb Рік тому +1

      Chinese real estate all made with debts and their national banks will go bust because of it.

    • @FilesdocumentsAndreposit-kr3vb
      @FilesdocumentsAndreposit-kr3vb Рік тому +20

      They are literally billions of buildings in India.

    • @SinkLikeStone
      @SinkLikeStone Рік тому +10

      However housing doesn’t come free. Most Chinese ppl spend 15-30 years for paying mortgage. And the ownership is only merely 70 years of ownership which assumes that the building would last that long?

    • @pjacobsen1000
      @pjacobsen1000 Рік тому +13

      The US has a pretty healthy housing market with new homes being built all the time. Homelessness is not a problem of too few homes, but rather that housing prices are high in the most popular places. Additionally, a very large share of the homeless are homeless because of mental health issues, especially schizophrenia, where sufferers cannot live indoors without feeling paranoid. Also drug addiction is a major reason for homelessness.
      The "ghettos", "hoods" and "projects" are social housing paid for by the state to house people who cannot afford to pay themselves. All these problems tend to affect mature economies, and less so developing economies.

  • @eddieleong6490
    @eddieleong6490 Рік тому +2

    China is so short of food...so why not start indoor farming under LED lights? Can use all the incomplete apartments or completed empty apartments. When demand increases, just move the racks back out.

  • @datingcoachj
    @datingcoachj 10 місяців тому

    At 4:28 you mistakenly used footage of Taipei, Taiwan when referring to Guangzhou, China. Why?

    • @datingcoachj
      @datingcoachj 10 місяців тому

      Makes me question your credibility and biases.

  • @felton-rx3ue
    @felton-rx3ue Рік тому +6

    Why SCMP can't produce any updated inside story but lets their viewers savor outdated leftovers of other medias? We need to know the news, what are the current situations of the RE market and Evergranda in China, instead of repeating old stories.

  • @rgen28
    @rgen28 Рік тому +3

    The chairman needs to go

    • @wynn3077
      @wynn3077 Рік тому

      The emperor never will resign.

  • @ddbliss2871
    @ddbliss2871 Рік тому +4

    Supply and demand is only part of the problems … In a true market economy .. price correction would have happened a lot earlier … But really the system failed them … there should have never ever any rotten-tail project .. as in theory down payment + mortgage loan are going to the developers .. they would have plenty of money to finish the project .. but greedy developers used these money to buy more land and developed more projects .. full value from banks again when they’re pre-sold .. exactly like a ponzi scheme .. rules and regulations to finish the projects were ignored .. by corruptions all over the places including banks .. resulted buyers are paying mortgages without homes

    • @dons123111
      @dons123111 Рік тому +1

      In the US a contractor can only take 10% down when building a project for you and there is a schedule of work that has to be complete before the next payment is due. Missing a payment would cause a lien on the property by the contractor or missing a completion deadline would kick in a fine on the contractor each day the schedule is behind. Civil Law was invented by the market in western civilization which communism doesn't apply but rather is authoritarian.

    • @youtubeuser206
      @youtubeuser206 11 місяців тому

      chinese viewed housing as a store of money so many people were buying 2nd, 3rd or even 4th homes expecting to sell it later so developers kept building to meet that artificial demand, raising prices for first time homebuyers and creating a huge oversupply

  • @lokesh303101
    @lokesh303101 Рік тому +4

    Somehow finish the existing Housing and Reality Projects. Somehow China needs to see the transportation costs on terms of Market Prices for easy sales-on-Clearance of unsold Housing Units.

  • @malkov0001
    @malkov0001 Рік тому +1

    Idiot buyers. No one should pay 100% unless the building is completed.

  • @robertwang7825
    @robertwang7825 Рік тому +3

    It will take many yrs to normalize or stabilize.

  • @paulngo4631
    @paulngo4631 Рік тому +5

    Praying this happens in America soon. We need lower housing prices.

    • @dons123111
      @dons123111 Рік тому

      The problem in the US is banking bailouts.

  • @penukulbesi4006
    @penukulbesi4006 Рік тому +1

    The loss is shared equally by the buyer and the developer, however, if the developer rebuilds it, the cost will almost certainly grow while the developer stays unprofitable because the buyer's payment remains below the cost, and the buyer will face 100% of the loss.

  • @YourMomNDad
    @YourMomNDad Рік тому +1

    No protection at all

  • @rotraven
    @rotraven 11 місяців тому +1

    it's crazy that china didnt even have a sort of red tag system that would force Everygrande to pay back lenders (at least) before they can access their funds. China is known for it's rigid social control but they really drop the ball on many micromanagement sectors of their economy.

  • @amardeepsidhu2871
    @amardeepsidhu2871 Рік тому +1

    Not any different then USA market everyone is real estate investor and Airbnb host .

  • @kradfreedom9624
    @kradfreedom9624 Рік тому +13

    Let those scam developers finish those projects first before allowing them to borrow money or accept new projects or customers. Its sad knowing a lot of people there are continuously paying for unfinished houses while unable to move yet and some forced to stay to these hollow buildings without water or electricity.

    • @serena-yu
      @serena-yu Рік тому +2

      The buyers borrowed money from the banks not the developers. They are obliged to pay for the bank's debt. The house was used as a collateral, but an unfinished house would be worth a lot less than it was collateralized for. The bank would request the borrower to fill the gap of lost value if the case goes into a default. In addition, there is no liquidation for individuals in China. In short, under China's financial rules, there's no escape from the money you borrow in the mortgage, never ever, even if it resulted in no house delivered.

    • @dnguyen787
      @dnguyen787 Рік тому

      ​@@serena-yuthat sounds like a third world mafia type economy! When will the people of China wake up?😢

  • @chewie94116
    @chewie94116 6 місяців тому

    There is no point for these home owners in China to keep paying mortgages when they know that the chance of finishing construction on their home is 1% or less. I would stop paying and declare bankruptcy if I were them.

  • @lastChang..
    @lastChang.. Рік тому +12

    For those who were hoping this would be the end of China's rise
    - Sorry to disappoint you
    - Chinese leadership knows how to handle crisis such as this.
    - Do you see any bank runs in China lately?

    • @Hkchinese888
      @Hkchinese888 Рік тому +2

      - Sorry to disappoint you

    • @Hkchinese888
      @Hkchinese888 Рік тому +3

      Do you see any bank runs in China lately?

    • @Hkchinese888
      @Hkchinese888 Рік тому +3

      - Chinese leadership knows how to handle crisis such as this.

    • @bulletflight
      @bulletflight Рік тому +3

      ​@@ToiChutGongFluGood job, you won't be purged like Bo Xilai.

    • @dzcav3
      @dzcav3 Рік тому +2

      Yes, I have seen four Chinese bank runs lately. The police broke them up, and the poor depositors didn't get their money.

  • @Erik-gg2vb
    @Erik-gg2vb Рік тому +1

    Land sales are not going to feed the local gov. much now. They will need to get creative.

    • @warg8728
      @warg8728 Рік тому

      The local governments are trying to raise finances by fining anything and everything they can, public servants income is linked to the amount of fines they generate for the population.

  • @tommorningstar6373
    @tommorningstar6373 11 місяців тому

    Congratualtions on reaching the 100K level. Great video and whatever you did to block out wind noise worked very well. These industries have got to be running out of suckers.

  • @panoptijohn
    @panoptijohn Рік тому +4

    It's over, bros. The bubble has burst.

    • @blokin5039
      @blokin5039 Рік тому +3

      Cool so now you can stop being obsessed with China right?😁

    • @panoptijohn
      @panoptijohn Рік тому +1

      @@blokin5039 I hope you were able to buy a finished apartment. Are you one of the unlucky ones paying for an unfinished flat?

    • @blokin5039
      @blokin5039 Рік тому +2

      @@panoptijohn Nope I'm unlucky enough having to content with certain cultures in my own country harassing my wife while rarely getting out anymore because of rampant gun violence. How are you holding up?

    • @panoptijohn
      @panoptijohn Рік тому

      I live in a country with virtually no gun crime. Not everyone who reviles the CCP is American.

    • @panoptijohn
      @panoptijohn Рік тому

      @@blokin5039 Chinese wolf warriors constantly remind the world that China is an indispensable part of the global economy and destined to become the world's leading economy. Is it not right, therefore, to pay attention to it?

  • @commiepig8016
    @commiepig8016 Рік тому +2

    C economy is crashing down? Is that why they are meeting USA representatives Yellen recently in JULY 2023?

  • @stevenliu8200
    @stevenliu8200 Рік тому +1

    Dang I wish I can lose 90 percent of my net worth and still have 3 billion...

  • @ghitam6
    @ghitam6 Рік тому +1

    Greed and corruption

  • @senzen2692
    @senzen2692 11 місяців тому

    The government needs to compare the economic and social (feeling of injustice) cost of bailing out developers vs the lower cost of clear laws and rules designed to prevent developer misuse of funds. Anticipate instead of react after the fact.

  • @edgardovillacorte7012
    @edgardovillacorte7012 11 місяців тому +1

    This was predicted about 5yrs ago with the proliferation of ghost cities.

  • @Evelyn56067
    @Evelyn56067 11 місяців тому +4

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      @FrederickBlein 11 місяців тому

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      @GeorgiaMoore. 11 місяців тому

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    • @Lincoln191
      @Lincoln191 11 місяців тому

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    • @SofiaAnsari-wb7gn
      @SofiaAnsari-wb7gn 11 місяців тому

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  • @williamlouie569
    @williamlouie569 11 місяців тому +1

    As for all business it requires rules and regulations by the government to oversee fair development. You can see the results when lawlessness. Housing bubble!

  • @amanitamuscaria5863
    @amanitamuscaria5863 Рік тому +3

    The thing with cooking books is that eventually, like food, they become overcooked.

  • @ksoo8938
    @ksoo8938 11 місяців тому +1

    never buy presale house

  • @aliciafreitag6682
    @aliciafreitag6682 10 місяців тому

    Maybe they will finally stop stealing sand for the concrete from their neighbours.

  • @ttemp2631
    @ttemp2631 Рік тому +14

    I have been looking for housing at crashed prices in 2nd tier cities like Fuzhou and Wenzhou but I haven't noticed any drop.

    • @justgado2772
      @justgado2772 Рік тому +4

      Most 1st and 2nd tier price are mostly flat but on other cities, it’s falling. Demand still high cause peoples migrate to bigger tier cities. Hence the high price.

    • @ttemp2631
      @ttemp2631 Рік тому +5

      @@justgado2772 so this video is complete fake news. Initially I was glad that this may be a chance, but no
      only disappointment.

    • @nzmanhdee6246
      @nzmanhdee6246 Рік тому

      @@ttemp2631 smaller cities yes

    • @ttemp2631
      @ttemp2631 Рік тому

      @@nzmanhdee6246 not interested in smaller cities

    • @dzcav3
      @dzcav3 Рік тому +3

      @@ttemp2631 "not interested in smaller cities"
      That's why prices are still high in large cities. Those are the only places people want to live. Prices are falling in smaller cities because people don't want to live there as much. Eventually it will catch up to the big cities also. Give it a few more years.

  • @charlesnyagah7423
    @charlesnyagah7423 11 місяців тому

    Singapore PM visits Kenya to benchmark how corruption affects an economy

  • @jordankerr8137
    @jordankerr8137 Рік тому +6

    It's not up to the scientific community to convince people the science is sound. Their job is science. It's up to people to get a friggin' clue and stop believing conspiracy theories.

  • @hs630617
    @hs630617 Рік тому

    4:30 is Xin-Yi District, Taipei, Taiwan, not Guangzhou, China!

  • @eliharp3576
    @eliharp3576 Рік тому +8

    "The price of life is to high to give up. It's got to come down again." (Merle Haggard)
    What's done is done so time for solutions everyone can live with. The people deserve to get what they paid for!

  • @krazykorean2525
    @krazykorean2525 11 місяців тому

    it could be mainly because china's yuan is tied to the state and is routinely devalued to avoided a natural occurrence when markets are trying to correct.

  • @simonvabraham
    @simonvabraham 11 місяців тому

    USA had it's own housing crash in 2009 to 2013, when a small house sold for 120,000 in 2005 was available for auction at 40,000 by 2013. A 1/3rd correction. Some damaged houses (Angry owners) were left empty for years and sold as low as 18,000. Govts subsidized the real-estate taxes, the banks lowered interest rates + temporary breaks with lower payment plans. The prices only recovered in 2021. Promoting houses as a get-rich scheme is bad idea.

  • @strideredz
    @strideredz Рік тому

    7:33 As Kay would say, "Why the swan have to be black?" 😂😂

  • @thomasmerrill3585
    @thomasmerrill3585 Рік тому +1

    Look at what happened to rome.

  • @HiepNguyen-xs2pr
    @HiepNguyen-xs2pr Рік тому

    how could it go broke when people pay it in advance to build their houses? overvalue and Greed!

  • @Bmwstephen
    @Bmwstephen Рік тому +1

    That’s whack- how do Chinese banks even if approve mortgages on incomplete projects. Are the appraisals valued on concept? Besides the way property laws work there, you never own the land (only leased).

    • @HKim0072
      @HKim0072 Рік тому

      Yeap. But, downpayments are massive. At least 20%.
      Lol, and any negative equity...the mortgage holder has to pay off for the rest of their lives.

    • @aaronp2542
      @aaronp2542 Рік тому

      Appraisals are valued on concept here too in the west. You think people don't pre sale new construction buildings or don't get loans to build new construction?
      Besides you pay property tax and the concept of eminent domain is a thing. Do people really own the land outside of a paper saying they do that the government permits you to use with restrictions?

    • @Bmwstephen
      @Bmwstephen Рік тому +1

      @@aaronp2542 not quite correct. they are valued at the phase of the construction and any smart lender won't lend more than 80% of LTV of that stage. For example, the builder would finance the build via construction loan. but a construction loan is appraised based on the land value which is significantly less value than a completed home. Only when the house is completed, does it qualify for an appraisal of traditional mortgage; so different risk and underwriting guidelines all together. In China- the lender/builder is essentially bypassing construction loan and using the entire mortgage (based on agreed value of the builder essentially) to finance the construction to completion; bypassing a lot of check and balance. The homeowner in China is also an idiot for assuming the full risk of the construction in progress. At least here in the US, if my builder doesn't complete the project, I can't qualify for the mortgage and therefore assume the risk of an incomplete project.

    • @MyMovie5858
      @MyMovie5858 Рік тому

      When the housing prices grow at 20% annually, banks really don't care much about appraisal.

  • @yakisobaj
    @yakisobaj Рік тому

    4:30 was filmed in Taipei. Not Guangzhou China.

  • @noniimut25
    @noniimut25 Рік тому

    not to be nitpicky but the clip at 4:29 is Taiwan Xinyi district, not China. lol

  • @deepakpunia2188
    @deepakpunia2188 Рік тому +6

    Same story in India real estate market specially NCR

  • @PaliAha808
    @PaliAha808 5 місяців тому

    As w/the 1 child policy the CCP *_did not_*
    foresee the repercussions of requiring buyers to pay
    the cost of a home in full & passing on that money to the builders.

  • @michaelpan2972
    @michaelpan2972 Рік тому

    Hmmmm I like how you guys added clips of Taipei

  • @b.carrie837
    @b.carrie837 Рік тому

    Don’t build when you don’t need it, seems simple

  • @2226robin
    @2226robin Рік тому +1

    Yes we already knew the problems, how about solution ? solution ? solution ? No solutions so what is the purpose of this video ? …….. Wasting my time.

  • @Superpooper-2020
    @Superpooper-2020 Рік тому +7

    China has too many houses while here in my inddia we d0nt even have t0ilets

  • @bostonbruinsfanboy
    @bostonbruinsfanboy Рік тому

    -1000 social credit points lol

  • @guff9567
    @guff9567 Рік тому +4

    Con artists in an unaccountable country without a justice system

  • @ivychua4091
    @ivychua4091 Рік тому

    Ridiculous to pay the developers the FULL AMOUNT .......
    how dump & greedy of these common gamblers #Greed ☠

  • @wildbill6366
    @wildbill6366 11 місяців тому +1

    It will crash ... People's jobs are leaving , many of these homes are second or speculation homes so they are under the fire .. The crash will be amazing to see ...

  • @josephwong453
    @josephwong453 Рік тому

    Can please tell the full story
    Which Hedge Fund was involved they were ask to re capitalise not to have loan from Chinese Bank

  • @chewie94116
    @chewie94116 6 місяців тому

    How can the person in this video predict market stabilization on homes that will never be built. Why would anyone in their right mind keep paying for a mortgage on incomplete homes? Maybe 1 or 2 months is ok, but 4-5 years already have passed. Evergrande-- is not coming back because they already spent your money and is declaring bankruptcy. Stop paying your mortgages.

  • @budimanbudiman2935
    @budimanbudiman2935 11 місяців тому

    He is still richer than most of us at 3 billion usd

  • @hunterxhunter777
    @hunterxhunter777 Рік тому +1

    0:14
    Social Credit Points - 999,999,999 points
    All of them will be executed on 15 th August 2023

  • @jon_nomad
    @jon_nomad Рік тому +2

    China's property market probably tanked at the moment. Still, China's property market is still one of the best investment in the world. The irony...

  • @LivingSpace.
    @LivingSpace. Рік тому +19

    China and the Chinese people went through even much worse situations before in their history you know. From famine due to the failure of the Great Leap Forward to social turmoil as a result of the Cultural Revolution. China and Chinese people would rise up in the end, stronger and wiser. This property crisis is not even a major concern for the Chinese government, just a temporary setback

    • @deebil8099
      @deebil8099 Рік тому +1

      lol, it's over 30% of their economy and it's going to be completely wiped out soon. If you're going to push your nonsense propaganda, at least make it somewhat believable... Now that the entire civilized world is decoupling from China, it's all over. The CCP knows their fake economy will not last, that's why the CCP has turned China into a police state with no freedom. China is basically a larger North Korea. Soon they will be just as poor as them too.😆😂

    • @panoptijohn
      @panoptijohn Рік тому +2

      So this isn't a crisis? Why is everybody so worried then?

    • @jkardez4794
      @jkardez4794 Рік тому +3

      Nothing has changed ; Chinese govt is still clueless and debt is increasing while unemployment is soaring .

    • @dzcav3
      @dzcav3 Рік тому

      You said. "This property crisis is not even a major concern for the Chinese government, just a temporary setback" You are generally correct. The Chinese government does NOT care about the Chinese people. It only cares about staying in power. As long as there aren't enough people rioting to overthrow the it, things are OK for the government.

    • @tonyh4392
      @tonyh4392 Рік тому

      ​@@jkardez4794I'm still waiting for the coming collapse of China as many experts hv been bragging on the internet. I'm just curious how many days u as the expert give china before it collapses completely to stone age!!?

  • @Patrick-bu5vy
    @Patrick-bu5vy Рік тому +4

    All bubbles burst eventually. Always. Tesla is next.

  • @stephanenguyen2618
    @stephanenguyen2618 Рік тому

    The video at 4:29 is in Taipei, Taiwan not Guangzhou, China lol