Ghost cities: 50 million homes in China are empty: China is counted among the developed countries. It is a country with top 3 economies in the world. But there too the dreams of crores of people remain unfulfilled. There are tears in the eyes of those people who do not have a job or any business, do not have ration to eat and do not even have a house to live. That too when crores of ready-to-move flats are lying vacant in China. That is, it is clear that the election promises of Chinese President Xi Jinping, who has been ruling Beijing for a long time, are also incomplete like those of Asian and other continental countries. What is going wrong? Why are these houses lying vacant for a long time? Let us give you the answer to every such question.
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Recession in real estate sector
The property sector has seen a huge decline ever since China’s leading real estate company China Evergrande Group was declared a defaulter in 2021 due to debt burden. The Chinese real estate sector has been facing recession-like situations for almost five years. According to media reports, now a former Chinese official has criticized the Xi Jinping government and said that despite being a country with a population of more than 140 crores, China’s vacant houses have not yet been paid.
(This aerial photo taken on August 30, 2023 is of a residential complex built by Chinese real estate developer Vanke in China’s central Henan province. Lakhs of such flats are lying vacant.)
‘Crores of flats are lying vacant’
Former senior NBS official He Keng said, ‘How many vacant houses are there now? In answer to this question, every expert gives a very different figure. The most extreme people believe that the current number of vacant houses in China is enough to house about 3 billion people.
According to a video released by China’s official media China News Service, Keng had said on a stage in the southern Chinese city of Dongguan that there are so many empty houses in his country that even about 1.5 billion people cannot fill them. Earlier, a spokesperson for Beijing’s Foreign Ministry had stressed that the Chinese economy is ‘resilient’. She can bear such a long wait.
Is China’s economy headed towards ruin?
Regarding the answer to this question, it was said in a recent press conference that all kinds of comments predicting the collapse of China’s economy keep coming up from time to time, but there is no problem in this, because China There is no threat to the economy.
Houses are lying vacant due to these reasons
According to National Bureau of Statistics (NBS) data, the combined floor area of unsold homes stood at 648 million square meters at the end of August 2023. According to a report by news agency Reuters, crores of houses are lying vacant. That too when many residential projects have already been sold. That means the projects have been completed but due to cash crunch in the market, they have not been filled yet.
China has not yet fully recovered from the bite of the Corona epidemic. The unemployment rate is at its peak. Crores of youth do not have jobs. Many sectors like education and real estate are badly affected. People do not have money to maintain their standard of living properly. In such a situation, people do not seem to be interested in buying vacant houses. At the same time, some people are calling the vacancy of houses a failure of Chinese President Xi Jinping.