On Exporting China’s Empty Cities And John Key Telling You To Buy A Flat Or Why You Should Be Worried About Auckland’s Housing Bubble.

In May 2013 I linked to a documentary about the empty cities of China. At the time China was building between 12-24 entire cities with nobody to live in them. The cities, existing mainly out of huge apartment blocks were build to serve as an investment tool for the people hoping to rent out the apartments after they bought them in order to make money. 

The apartments bought with sometimes the savings of many generations are to expensive for the people who own them to live in themselves and there are no people to rent the apartments either resulting in entire cities left to rot in desolation.

In the  article I predicted that this crazy behaviour of the Chinese central government meant to kick the can of China’s economic collapse down the road would inevitably have  to be deserted but that was before I realised that they would simply export the behaviour abroad.

Well, maybe not entire cities but most certainly huge building projects such as big apartment towers full of luxury apartments. Or simply apartments as the case may be. You know the ones John Key wants you to start in as a first time house buyer!

Another type of building Chinese companies, who are without fail owned by the ruling Chinese elite,love to build are big industrial zones. The projects are undertaken because the Chinese ruling elite is looking for ways to export their wealth to safer places just in case their own population wants a better life and starts taking it without asking, This is very much a story about an ever enriching global elite as the general Chinese population does not get anything out of this except slave jobs and not an anti Chinese people post.

Here is such an example: facilitated by another one of John Key’s Toff mates Boris Jonson

The same thing is happening in New York, California, Sydney and Melbourne to name a few of the cities China is taking on. The result in all those cities is the same. It drives prices up to an incredible bubble which inevitably will burst but since all the properties are build as investment projects and were never meant not to serve as legitimate housing for local people the people who live in those cities are driven out and end up jobless and in squalor while international investors reap the  profits of their predatory speculative behaviour.

So is this happening in Auckland too? Well here are some dead giveaways:

  • John Key adviced young first time buyers to consider buying a flat as a first home. Maybe he knows something we don’t.
  • A $25 million Auckland property was sold to a Chinese student in June of this year!
  • Ray White Real Estate’s commercial arm says in the last year, more than half its Auckland business has come from high net-worth resident and non-resident Chinese and Chinese investment companies, who bought 15 properties worth $249m.
  • National actively encouraging Chinese investment in all of New Zealand as a means of keeping the asset bubble that keeps the economy afloat going at least until after they leave power.
  • David Caselli is talking about an estimated $30 BILLION game changer out of China:

    “Chinese interests are fuelling New Zealand’s economy, and increasingly becoming crucial for Auckland’s accelerating economic growth,” says David Caselli, who is General Manager Business Attraction and Investment for Auckland Tourism, Events and Economic Development (Ateed).

I don’t know about you but to me it seems they are exporting their empty cities to the rest of the world and Auckland’s population is in for a bumpy ride! But make no mistake it only starts with Auckland the rest will follow.

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