Zhengzhou Ghost City

View Larger Map

A graphic demonstration of the coming China Real Estate Bubble bursting is found in these views of Zhengzhou New District in Henan Province, where no cars or people are to be seen among the incredible new forest of structures. One of the many giant developments or virtual "new cities" being ground out in China at an unsustainable rate. The lack of real access to markets – because all the real business opportunities are tied up by China’s SOEs and well placed Party members – for China’s growing investor class has resulted in ridiculous property and stock valuations. Frankly, Chinese friends have told me that there is no where else for them to put their money to try to avoid the rampant inflation caused by the Yuan peg, so they buy condos that they can’t rent, but hope will be occupied someday. When the crash comes, it will make the American real estate and stock collapse look like a walk in the park.

Learn more at: http://www.dailymail.co.uk/news/article-1339536/Ghost-towns-China-Satellite-images-cities-lying-completely-deserted.html#ixzz1Mb3OqI7s