Construction continues to tumble
by Birger Hoppe via FlickrBeing a bit on a crisis watch for China, the continued dropping of the real estate sector, here reported today by the Shanghai Daily, is of course an important signal. In short:Pre-construction sales of residential units in Beijing dipped 76 percent in September from the same month last year, according to an industry Website.As so often, the downturn in the real estate has more to do with internal Chinese trouble than with the global financial crisis. Not sure about the stock market yet, but the fluctuations of the Shanghai stock exchange mostly seem rather disconnected from any global trouble. Today the stock market lost a bit of money, but very little compared to the international markets.
And in Shanghai, about 290,000 square meters of housing were sold in the first 20 days of September, only 20 percent of that in the same period of last year.
In the capital, a total of 2,788 pre-construction units were sold last month, according to the Beijing Real Estate Trade Management Website under the Beijing Municipal Construction Committee.
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posted by Fons Tuinstra at
11:13 PM
1 Comments:
If there is no buyers, there is no export, if there is no export, there is no jobs, if there is no jobs, there is no income ... so even if you would like to believe that housing is a China internal issues. I think it would be too naive to think Chinese make money within China, and does not depends on money made from abroad.In fact economists have been talking of the danger of depending on China for import. We see it to clearly lately with the Melanie crisis. But the reverse is true ... China depends on the world to buy their products. When the world don't buy, China is in trouble too. We are now facing the issue CAN the world afford to spend money the way they used to before the financial crisis?
The world, that is the US (major, major importer of Chinese goods), Europe (another major importers of Chinese goods) are facing huge and deadly financial crisis. CRISIS, not just problems. Right now we are not seeing much problem because all the export from China are orders from months before. What you are going to see is after x-mas, after new year when businesses are working on next year's orders.
China has billions and trillions of wealth. But do not forget China also has 1.6 billion or more inhabitants, one hell of an earth quakes, plenty of food poisoning cases that the rest of the world are weary of, recent energy crisis that wake up the rest of the world to the benefits of cost of import, the cost of setting factories or businesses in far away countries ...
As usual, my concerns is not how the rich in China, but the poor, the internal migrants. Now that the Olympic is over, will China still build as fervently as the past 8 years?
Cindy
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