Building Boom in China

This is the inside of a mall to be. Huge and beautiful spaces, nearly new (maybe two years), but seemingly abandoned mid-project.

Western media have speculated as to the existence of a real estate bubble in China. Anecdotal evidence shows that only 40 % of new construction is being sold before the builder moves on to new projects. Total occupancy rate typically is about 40 % (that means some more apartments are sold, but remain unoccupied by the owner, who simply considers them as an investment).

The building bubble is not a danger to banks, since the financing is very sound. However, the building boom will wipe out the middle class who invested their savings in real estate.