POSTED BY November 18, 2010 3:14 pm COMMENTS (13)ON
I came across an article which talks about why China is on its way to one the biggest bear market for whole economy + real-estate to be specific . Excerpts
One day, at a research conference in 2009, Chanos listened to an analyst tick off numbers about the scale of China’s building boom. “He said they were building 5 billion square meters of new residential and office space — 2.6 billion square meters in new office space alone. I said to him, ‘You must have the decimal point in the wrong place.’ He said no, the numbers are right. So do the math: That’s almost 30 billion square feet of new construction. There are 1.3 billion people in China. [In terms of new office space alone] that amounts to about a five-by-five-foot cubicle for every man, woman, and child in the country. That’s when it dawned on me that China was embarking on something unprecedented.”
assuming that a person would need not more than 250 sq feet of space to live in (assuming 4 people living in family with 1000 sq feet) , total space required is only 10% of the current space constructed , who the hell will consume the rest ?
Any comments from others ? How will it affect indian real estate markets ?
Source : http://finance.fortune.cnn.com/2010/11/17/chanos-vs-china/