Cross-posted from Investing in Chinese Stocks.
This article dubs Fangchenggang, in Guangxi, as more crazy than Ordos. Over the past 5 years, this city with a population of 400,000 has seen 8.5 million sqm of property development, and if the average home is assumed to be 120 sqm, there are over 70,000 homes built.
Also, over the past 5 years, 7.3 million sqm have been sold, but the population has only increased at its natural rate of less than 1% annually.
Many buyers are out of town investors, looking to profit in this seaside town.
Now that financing has become tight, all the problems seen in other cities are manifesting: developers aren’t finishing properties, investor assets are frozen in these properties, investors returning properties, etc.
Additionally, the city’s steel industry is suffering due to nationwide factors, adding more trouble for the local real estate market.
iFeng: 楼市又现一新鬼城比鄂尔多斯还疯狂 遍地房子
