The China Real Estate Bubble

The two most troubling things about visiting China are the smog and the scale of the development boom. It is going on everywhere.  Big cities.  Minor cities with little to offer tourists, but it has the provincial government and a big manufacturing base that perhaps can justify so much construction.

The wonderful HBO news show Vice did a very interesting story on the real estate problem in China.  They visited acre after acre of multi-story housing developments that were basically sitting empty and deserted.  Brand spanking new.  The episode is available on youtube.  Check it out.

These apartments are designed for families. A couple's starter apartment will often be three bedrooms; one for the parents, one for the kid, and one for grandma who takes care of the kid while the parents work. We're talking a thousand square feet on average.