How big a trouble China’s economy is in, this one figure makes the whole picture clear.
According to the National Bureau of Statistics, houses with floor area equal to 648 million square meters are lying unsold in the country. According to a report, the actual figure may be much higher than this.
China’s economy is in big trouble. This is known from the figures given by a former official associated with the government, according to this official, the number of vacant houses in the country is so much that even the population of the entire China combined cannot fill it. This information has been given in the Reuters report. This figure given by the former officer gives two different indications. Firstly, the situation of China’s real estate sector, burdened with debt, is more critical than anticipated. Secondly, it rarely happens in China when an official associated with the government makes claims raising questions on the government. This means that now questions are being raised on the policies of the government within the country.
what is this figure
The policy of the Chinese government is very strict regarding releasing data, that is why many questions remain regarding the number of vacant houses in China. Although, according to 81-year-old He Keng, former deputy head of the Statistics Bureau, every expert has his own claims, but if we look at the upper limit, the number of vacant houses in China is enough to provide shelter to 3 billion people. Which is double China’s own population. Addressing a forum in a video released by China’s news agency, Keng said that even though this figure may be quite high, it is true that even China’s entire population of 140 crores together cannot fill these empty houses.
According to the Reuters report, this statement of Keng is completely opposite to the statements of the government in which it is being said that the economy remains strong.
Why is this statement important
China’s property sector was once the most important engine of economic growth. However, now this sector has become a sector of companies burdened with debt. Due to the supply being many times more than the demand, there is a possibility of the situation worsening further. According to the National Bureau of Statistics, houses with floor area equal to 648 million square meters are lying unsold in the country.
According to Reuters, this figure is equivalent to 72 lakh houses of 90 square meters. Which at first glance seems to be a very small number. However, according to Reuters, it does not include such houses which have already been sold but have not been built yet. Because the developers have run out of money. Also not included are such houses which were bought in bulk by dealers to sell later after the fall in prices but now they are lying unsold.
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