From Dinocrat.com, via THE ASTUTE BLOGGERS:
Of the 35 major cities surveyed, property prices in eleven including Beijing and Shanghai were between 30 and 50 per cent above their market value, the China Daily said, citing the Chinese Academy of Social Sciences. Prices in Fuzhou, capital of the southeastern province of Fujian, had the worst property bubble with average house prices more than 70 per cent higher than their market value…Read more, and see more photos HERE at the Daily Mail in an article entitled "The ghost towns of China: Amazing satellite images show cities meant to be home to millions lying deserted."
According to research carried out by Time magazine, fixed-asset investment in the Asian country accounted for more than 90 per cent of its overall growth — with residential and commercial real estate investment making up nearly a quarter of that. Regional governments across China have been building massive real estate projects, including Kangbashi in Inner Mongolia and Zhengzhou New District, which have remained empty…
Regional governments across China have been building massive real estate projects…Kangbashi, which was built in just five years, was meant to be the urban centre for Ordos City — a wealthy coal-mining hub home to 1.5 million people. It was filled with office towers, administrative centres, museums, theatres and sports facilities as well as thousands of homes, but remains virtually deserted.
Time Magazine has more photos.
Reliapundit of THE ASTUTE BLOGGERS comments:
* AND MAYBE IF-AND-WHEN THE CHINA BUBBLE BURSTS, IT WILL BE WORSE THAN THE OIL BUBBLE AND THE FANNIE MAE BUBBLE?China hasn't had a recession for three decades. Furthermore, right now in China, property prices in some major cities are overvalued by as much as 70%.
* THEY MAY BE IN WORSE SHAPE THAN THE USA AND IRELAND AND SPAIN AND GREECE AND CALIFORNIA AND SO ON.
What will China, holder of a significant portion of United States Treasury Securities, do to try to head off a possible economic meltdown?
Is China's reduction in exports of rare-earth minerals an attempt to shore up China's economy instead of that nation's meeting an intra-China demand for those minerals? All those ghost towns in China do seem to belie China's official statements as to why the reductions are taking place.
The present worldwide recession, a depression really, isn't over. Not by a long shot.