Thursday, May 19, 2011

China's governement planned ghost cities

These sorts of towns raise the question -- does the government have some amazing vision for filling these cities... or are they just great white elephants that are wasting public funds?"

Can anyone say housing bubble? That coupled with China's looks like they'll be hurting 20 years from now.

In China's Inner Mongolia, Kangbashi district offers residents "new modern" living, with tree-lined streets, shiny apartment buildings, vast parklands, restaurants and even a motor racing track.

But seven years after construction workers broke ground on the arid plateau, most of the apartments appear empty and the wide streets are almost deserted -- earning Kangbashi the tag of "ghost city".

The new section of Ordos city on the edge of the Gobi desert was designed to accommodate about 300,000 people but residents say fewer than one-tenth of that number live in Kangbashi. Estate agents insist the number is much higher.[...]

Ordos is part of a nationwide building boom that has been fuelled by a massive credit binge, raising fears of a real estate bubble and a potential explosion in bad debts, especially among local government investment vehicles.

No comments: