[braunshedd]

I spent ~2 years in mainland China (Zhengzhou, where iPhones are assembled). The number of 15+ story apartment buildings along major freeways was astounding -- all of them seemingly empty.

When in China I was told this is driven by a combination of two things:

1. The average person in China does not believe in investing in intangible assets. This means the stock market is not appealing, so they all pile into the best physical investment around -- housing.

2. Owning your home and a car before marriage is considered 'mandatory' in traditional Chinese culture (for men). If you forego this you have what's known as a 'naked wedding' -- not good. Renting doesn't count.

Excess housing means the average rental yield (rent / property cost) is so low that it's not worth finding tenants. Examples include $300k condos renting for ~200 USD / month.

[bobthepanda]

The Chinese stock market is not incredibly appealing given the constant whiplash and regular confidence crises in listed companies. But it is difficult, if not impossible, for your average Chinese person to invest outside of the country.

Housing is used as an investment vehicle in the US, but the amount of capital sloshing within China looking for a return makes the effect much worse over there.

[taurath]

I have noticed that chinese owned apartment buildings in other countries tend to stay empty for very long periods of time and renting at too high prices. Instead of lowering prices and getting some income, they frequently just sit empty and not serving the communities they're in.

[AJ007]

That probably means the actual value of those condo units is $50,000, assuming the income holds up and the population keeps increasing. The big question to me is if the properties can even be maintained.