China Ghost Cities
China's Ghost Cities come without ghosts ... and humans beings, but comes with farm animals.
China has or had a wide range of developments envisioned as the palatial homes for the higher with the occupants now being local animals meandering through hundreds of abandoned properties.
The number of deserted developments scattered around China, is a reflection of the growing real estate crisis in the country. Numerous Chinese developers are massively in debt, defaulting on payments, and struggling with losses, resulting in these unfinished housing projects and skeletal would-be communities.
China's "
ghost cities" refer to urban areas that were built with modern infrastructure high-rise apartments, shopping malls, schools, and office buildings, yet remain largely uninhabited. These cities are often located in China's less populated regions and were
constructed with the expectation that they would accommodate large numbers of people as China’s urbanization efforts surged.
The idea behind building these cities was to drive economic growth and alleviate overcrowding in existing urban centers. However, the reality is more complex. While some ghost cities have seen gradual population increases as people eventually move in or businesses set up, many still remain largely deserted.
Critics argue that this overbuilding is a result of government policies that focus on GDP growth through construction, while others point out that it may be a necessary step for future urbanization in a rapidly developing country.
The phenomenon of ghost cities in China began in the early 2000s and accelerated with China's economic growth. The government, especially local authorities, encouraged massive construction projects to drive economic development and create jobs. In some cases, large-scale developments were created in anticipation of future growth that never quite materialized.
Greenland Group, the developer responsible for the
State Guest Mansion, recently defaulted on $400 million worth of international bonds it is reported in the media.
What is the government doing to correct the crisis.
The Chinese government has enacted a number of strategies in an attempt to curb the cascading impacts of the ongoing real estate crisis. In May 2024, policymakers reduced down payment requirements and cut mortgage rates to boost demand among potential homebuyers.
Additionally, as reported by Foreign Policy, China's central bank announced that it would give $42 billion in inexpensive loans to local governments to purchase some of the more than 8 billion square feet of unsold homes across the country and transform them into affordable housing.
This story is about:
China Ghost Cities
