The industry that has traditionally powered about a quarter of GDP has been in a downward spiral that policymakers have struggled to halt
All across China, from Beijing in the north, to Shenzhen in the south, millions of newly built homes stand empty and unwanted. There were nearly 391m sq metres of unsold residential property in China as of April, according to the National Bureau of Statistics. That is the equivalent of Manchester and Birmingham combined – and then some – sitting as vacant, unwanted property.
This glut of idle property has caused a headache for the government, shaken the world’s second largest economy and raised tensions over the purpose of housebuilding in a nation where property investment had been viewed as a safe bet.
Since the real estate sector was sent into a tailspin in 2020, caused by the pandemic and a sudden regulatory crackdown, the industry that has traditionally powered about one-quarter of GDP has been in a downward spiral that policymakers have struggled to halt.
The crux of the problem is that, with shaky faith in the economy and big property developers failing to deliver on paid-for apartments, potential homebuyers are keeping their money out of the market.
You wouldn’t want US homes in Europe, either. Most of the world has astonishingly shit construction in the name of higher profits and the understanding that housing has very limited lifespans.
Some US homes are great - robustly built, well-insulated, quiet, no leaky sewage, no leaky building membrane, wires routed properly, etc. Unfortunately, a lot of them were built decades ago. If you’re evaluating them in terms of materials or construction quality, US housing quality has gone straight off a cliff. Sure, there’s a bunch of glass facades on new buildings, but they hide the fact that sound insulation between units is nonexistent, the heat insulation is barely slapped together, the outlets aren’t all plugged in, and the hot water either turns completely on or completely off. Tour a new California townhouse and tell me again that it’s not built as cheaply as possible. Developers have figured out how to be stingy on everything you can’t see and instead dump money on fancy appliances and a marble countertop… Even if the toilet clogs if you look at it funny and you can hear your neighbour three doors down humming to himself.
Meanwhile, most US new build apartments are 5 over 1s, which are notorious for being a tinderbox. Though, US fire code is really well done, so if there’s a fire odds are you can make your way out in time.
Oh true, my dad’s house that I used to compare the ones in China to is in Germany.
Yeah, German houses are so nice man. Like I don’t think I could get a US builder to build me a German house if I tripled their budget. They just don’t know how.