Property speculators in China looking for the next big thing are moving beyond the big cities inland toward towns like Zhengdong. As Ryan Brooks reports, the new boom is breathing life into an old Chinese ‘ghost town.’
China’s new property fever spreads to ghost towns
China’s notorious property problems – coming full circle
as investors try to get in on what could be the next big boom.
After a year of volatile stock markets – people are looking for new places to make a quick buck…
That’s got buyers swarming inland toward the so-called “ghost towns”…
eyeing up empty leftovers from an earlier building frenzy – as a way to get onto the property ladder.
Reuters’ Yawen Chen reports from the second-tier city of Zhengzhou.
SOUNDBITE (English), YAWEN CHEN, REUTERS CORRESPONDENT, SAYING:
“Zhengzhou’s East District has always been regarded as one of the symbols of “ghost towns” in China. But recently it has been booming as one of the most expensive areas in Zhengzhou. For home buyers it’s not even a matter of money anymore. They have to be here early to be able to get a number so that they can be in this lottery system, where homes are going to be sold in two minutes. Many people are panicking because they fear that they will be left behind in this new race to grab houses in Zhengzhou.”
Across the country second-tier cities are flickering with new life…
with house prices up as much as 40 percent from a year ago.
But with home loans edging toward the breaking point of the subprime crisis a decade ago…
many are worried this new boom’s may all be built on a house of cards.