Why China needs to fill its empty homes

I f not another flat was built and sales continued at their current pace, it would take eight years to sell all the homes lying dormant around Luoyang, a city of 7m in central China. The region is a hot spot for the country’s property crisis, where years of overbuilding have turned entire districts into housing graveyards. Sprawling wastelands of concrete and glass scar the city.

The territory sits on an astounding number of critical minerals

A tax windfall has added to already overflowing coffers

The ultra-gloomy picture painted by politicians is no longer accurate

Governments across the rich world are at a loss

Treasury yields are rising ominously

The continent’s policymakers are too relaxed about the risks

A tax windfall has added to already overflowing coffers

They should act like them, then

Rachel Reeves has raised both borrowing and taxes by historic amounts

A bigger state but an irrational way to fund it

Treasury yields are rising ominously

Voters are starting to notice the good news just in time for the election

https://www.economist.com/finance-and-economics/2024/10/31/why-china-needs-to-fill-its-empty-homes

A source: www.economist.com/finance-and-economics/2024/10/31/why-china-needs-to-fill-its-empty-homes