China’s property crisis claims more victims: companies

THE FORECLOSURE and court docket public sale of 87 flats within the southern metropolis of Changsha final month underlines lots of the issues with China’s property sector. The houses had been owned by one girl, flouting the controls that Changsha and different cities have on the variety of housing items city dwellers can purchase. The truth that one particular person was capable of purchase so many highlights the backroom dealings that happen incessantly. Previously, such speculative exercise helped drive up costs and make China’s huge cities among the world’s most unaffordable. The scenario, which is beneath investigation, additionally exhibits how wealthy Chinese language usually have had few funding choices apart from flats. And even these investments now appear shoddy: many of the houses being auctioned in Changsha have gone unsold.