Inflation-adjusted home prices in China have fallen below where they started two decades ago, and the fiscal fallout is hitting local governments even harder than developers.
The result is property developers buying up swathes of land and leaving it vacant until the market reaches a frenzy and they can charge an unholy price for their crappy tract homes built by subcontractors under extreme cost reduction pressures. It doesn’t meet market demand, not remotely.
Zoning and local councils are certainly complicit.
The result is property developers buying up swathes of land and leaving it vacant until the market reaches a frenzy and they can charge an unholy price for their crappy tract homes built by subcontractors under extreme cost reduction pressures. It doesn’t meet market demand, not remotely.
Zoning and local councils are certainly complicit.