This story originally appeared on ValueWalk
The Evergrande crisis—China Evergrande Group (HKG:6666) (OTCMKTS:EVGPF)—has brought to light how China has more than 30 million unsold properties that could serve as the home to 80 million people. Mark Williams, chief Asia economist at Capital Economics, estimates that the “ghost town” phenomenon in the country could account for the entire population of Germany.Evergrande Crisis And “Ghost Town China”
As reported by CNN, a further 100 million properties are estimated to have been bought but not occupied, “which could accommodate roughly 260 million people, according to Capital Economics estimates.”The issue reflects key aspects of the Chinese real estate market and brings to light how key elements played a role.
