Xi (Foolishly) Plans Communist Answers For China’s Property Crisis. [Forbes]
Xi (Foolishly) Plans Communist Answers For China’s Property Crisis. [Forbes]
Beijing's planned takeover of Chinese residential real estate might cloak the nation's property crisis, but it will surely kill China’s fundamental economic momentum.
If the leaks and rumors are true, Beijing stands ready to launch a new and radical solution to the economy’s property crisis – a government takeover. What the authorities refer to as “a new model” would replace the old emphasis on ownership with more rentals and use government funds to buy up bankrupt properties so that in time the government’s role in real estate would rise from 5% of the market at present to 30%. Such an act would surely take the nation back to its communist roots if not quite the days of Mao Zedong. If it would veil the property crisis for a time, it would in the long run do tremendous damage to China’s economic prospects.
Beijing’s ability to manage real estate also comes into question after considering how poorly the authorities have managed things to date. Prior to 2020, Beijing actively encouraged residential real estate development, pushing local authorities to get involved and ensuring easy credit terms for both developers and homebuyers. Private builders and speculators responded actively, taking on debt and pursuing increasingly dubious projects so that even as China was meeting its housing needs, such development reached the astronomical level of some 30% of China’s economy. Then in 2020, Beijing abruptly removed all this support. Not surprisingly, the highly leveraged and extended developers began failing almost immediately.
oh no! not the speculators! it would be a real shame if a bunch of capitalists lost tons of money and all we got out of it was all this housing that now we can buy up for cheap!Since US prices are so high, they were salivating at a Chinese housing crisis. That way they could enter the Chinese market and buy up properties for cheap. But since the government is going to buy up the cheap homes, they can't enter the market. So now comes the propaganda tantrum about how there's no way this will work, it's evil, it's authoritarian.
Problem is that shit only works on Americans. Appealing to Chinese people's sens of individualistic English property rights doesn't really work.
you nailed it
also forbes about u.s. commercial real estate:
Finally, while it will be a tough year or two for the commercial real estate community, I expect the amount of capital on the sidelines will open up the market and create once-in-a-lifetime opportunities. As the old adage goes in real estate, "It is not the first or second but the third owner who makes money on a project." The opportunities will be plentiful, but the buyers will have to view the assets through a new lens.
Since US prices are so high, they were salivating at a Chinese housing crisis. That way they could enter the Chinese market and buy up properties for cheap. But since the government is going to buy up the cheap homes, they can't enter the market.
Incompetent Chinese property developer: "I consent!"
Soulless American hedge fund: "I consent!"
The Communist Party of China: "Was there somebody you forgot to ask?"
The myth of consensual market entry.
Prior to 2020, Beijing actively encouraged residential real estate development. . . [Developers persued] increasingly dubious projects so that even as China was meeting its housing needs. . . Then in 2020, Beijing abruptly removed all this support.
So they funded housing development until there were plenty of houses at which point they stopped funding more development and this is bad for some reason? What did they want them to do, continue encouraging development when there wasn't a need for it solely to prop up the investors?
What did they want them to do, continue encouraging development when there wasn't a need for it solely to prop up the investors?
Unironically yes. Liberalism is crazy
Won't somebody think of the line!
gives capitalists the money and leniency to build a bunch of housing
abruptly yoinks it from them after they’re built and tell them to fuck off
subsidize the housing so people can live in it
problem?
If the leaks and rumors are true, Beijing stands ready to launch a new and radical solution to the economy’s property crisis – a government takeover.
Leaks and rumours?
Isn't it what they said they would do ages ago?
No but see we can't trust anything China's government says it's going to do even though it has a long and storied history of doing literally exactly what it says it's going to do because ... reasons? I guess? So we can only trust anonymous sources instead.
There is no 'property crisis', its made up by the market.When 2008 housing bubble burst, the problem wasn't that the homes magically vanished, the homes remained, taken over by ghouls and leaving the individuals with debt which wasn't wiped off clean.
Oh, did someone get addicted to property speculation?This dude has written at least 9 China bad articles in the last month.
getting some of this probably. wonder if a FOIA would be able to find out where it all goes(a) Countering Chinese influence fund. —There is authorized to be appropriated $300,000,000 for each of fiscal years 2021 through 2025 for the Countering Chinese Influence Fund to counter the malign influence of the Chinese Communist Party globally. Amounts appropriated pursuant to this authorization are authorized to remain available until expended and shall supplement, not supplant, amounts otherwise authorized to be appropriated to counter such influence.
EDIT: apparently this money passed the senate but never actually became law. my apologies
It’s hard being American and realizing your government doesn’t give a shit about you and spends all its resources committing genocide
Lmao I thought the title was just the OP dunking on Forbes, but it's the actual article title, this is beyond parody
You (Foolishly) assumed they couldn't be so arrogant.
use government funds to buy up bankrupt properties so that in time the government’s role in real estate would rise from 5% of the market at present to 30%
We should let unused, bankrupt property be repo’d by banks so they can use it to gamble on doge coin
You know theyre seething because theyre doing the objectively right thing to do.
They're seething because normally they'd be swooping in to buy up all the housing for pennies in the dollar so that they can charge whatever rent they want to.
If housing shouldn't be a commodity, then why is it so lucrative under capitalism? Checkmate leftists
This is my dream result for the YIMBY movement. Dense infill housing built in all cities and then immediately expropriated.
Also it's very funny that 30% publicly-owned housing is communist when I'm pretty sure Singapore has a much higher percentage.
Yeah I think the "free" capitalist Singapore has like 78% of their population living in public housing...yet you don't see these fascists fearmongering about how Singapore is "foolish" and "communist" for doing so.
This is journalism? With these writing standards you may as well hire a sixteen year-old for $7.25 an hour.
I could do better and I hate writing
i could do better in my phone and u such writing on my phone
Fun fact: a lot of these articles actually are done for free or even the author pays the website/publisher. The telltale sign - as is the case here - is when the author works in a profession where they need to generate business (like investment managers) and especially when they have a book to sell. The author here almost certainly wrote this so he gets exposure as an “investment guru”.
Oh, a government program to buyout defaulted properties? You don’t say?
Except China’s not gonna be maintaining private ownership or redlining ethnic minorities out of said ownership
it would in the long run do tremendous damage to China’s economic prospects.
Says the people who's advice leads to less than half the economic growth that China has on off-years.
A big step in the right direction, but let's be real, this is basically just Keynesianism
Neo-libs are so far gone that they think that economies run on wishes and pixie dust.
Liberals critiquing Marxism: “Fear not, for Don Quixote has come to relieve you of your delusions! Those aren’t windmills you’re seeing, you utter fucking morons, they’re giants! Wake up sheeple!”
They can't keep getting away with being COMMUNISTS!
So glad they could tell us what to think of China's plans (foolish) rather than just do their damn jobs and just report the damn news and save their opinions for their damn blog.
It reeks of cope
Their job is to add the negative twist.
If you have the resources you can decide to just build houses and cut out the speculators. Also, power comes from the barrel of a gun.When Forbes accidentally gives Xi leftist street cred.
the maoist uprising against the landlords was the largest and most comprehensive proletarian revolution in history, and led to almost totally-equal redistribution of land among the peasantry
All this pro-war with China pieces just make me wish
My exploitation portfolio!My cock is (pleasantly) in the author's butt
what if it didn't need to?