China's ghost towns not so ghostly after all

James Marlay

Livewire Markets

China's ghost towns not so ghostly after all? It seems the phenomenon of China's ghost cities may have been overplayed. These massive property developments, which remain largely uninhabited, have often been cited as prime examples of China's unsustainable construction-led economy. CLSA analyst, Nicole Wong, who has just returned from a detailed tour of China, says she does not believe that China's ghost cities are as bad as commonly thought. In particular, the situation whereby cities are built now and occupied later is commonplace in China. As apartments are typically built as 'concrete shells', requiring buyers to fit them out themselves, they necessarily take a long time to get filled. Wong notes that buildings completed between 2008-11 in Zhengzhou, Ordos and Wenzhou-often cited as instances of an overly frothy property market-have typically seen tenants move in over a three-year period. (VIEW LINK)

1 topic

James Marlay
Co Founder
Livewire Markets

Livewire is Australia’s #1 website for expert investment analysis. We work with leading investment professionals to deliver curated content that helps investors make confident and informed decisions. Safe investing and thanks for reading Livewire.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment