“We have written about China’s ghost towns — neighborhoods with massive new buildings not inhabited by any people. Many see this as the clear evidence of overbuilding and a housing bubble.
Some economists, like Yale’s Stephen Roach has said, however, that China’s modernization is “the greatest urbanization story the world has ever seen,” and that these ghost cities will soon become “thriving metropolitan areas.”
But analysts say most Chinese people can’t afford the types of homes being built in the ghost cities.
China has been trying to get a grip on its property market for some times now and some say officials are in control and have been deflating the housing bubble.
However, the risks of the housing bubble evolving into a financial
crisis appear to be high…..”
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