It's Friday desk clearing time for this blogger. "Extell Development has sold a sponsor unit…
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From the first 7 minute video:
Are China’s Infamous ‘Ghost Cities’ Finally Coming To An End?
SqualidSuburbs
Apr 16, 2023
Since China privatized its state-owned housing stock in the 1990s, setting off a building boom, property developers have worked on the principle of “build it and they will come”. Many city governments took that a step further, erecting new districts with government offices and university campuses on this principle.
Since 2010, when satellite photographs were published showing hundreds of empty new apartment blocks and public buildings, the city of Zhengdong received a barrage of criticism. Years later there are signs of life in Zhengdong: the university campuses are filling up, government officials are behind their desks, and thousands of families have moved into new homes.
Not all is well for China’s ghost cities however, as many populations still remain far below their original growth estimates.
Timestamps:
0:00 Ghost Cities
0:42 Ghost City Overview
1:46 Weird Ghost City Policies
2:56 Who Actually Cares to Populate Them?
4:16 Xi Jingping’s Brain Child
5:42 Are These Cities Hopeless?
The second 10:28 video:
Buckle Up:The Northern Virginia and Washington DC Housing Market is INSANE
Northern Virginia Expert – Chris Colgan
Apr 15, 2023
As we look forward to the busy summer months, the biggest news is
that prices have not significantly dropped as many people had predicted. Interest rates have risen, and most analysts believe one or two more small rate hikes will happen before the Federal Reserve pauses.
While home prices throughout Northern Virginia are still relatively
high, the volume has gone way down and inventory levels are well below their five year averages in most areas. Prince William County has 372 current active listings, well below its five year average of 450. Loudoun County has 401, Fauquier County has 113, Fairfax County has 932, and
Alexandria City has 153, all significantly below their five year averages as
well. Arlington County has 296, roughly in line with its five year average
and the outlier is Washington, DC with 1,694 actives, well above its five
year average of 1,433.
Mainly what we are seeing throughout the area is a flat market, with
listings remaining on the market longer than average. Prince William
County has an average DOM of 21 days, Loudoun and Fairfax Counties 20
days, Alexandria City 25 days, Washington 42 days, and Arlington County
29 days, all well above their five year averages. Fauquier County is the
outlier this time, with 39 average DOM, compared to a 45 day five year
average.
Year over year prices, for the most part, are in line with their 2022
comparisons. Median sold prices in Fauquier County for March were
$500,000, down 11% from last year. Prince William County was $520,000,
in line with a year ago. Washington was $640,000, down 3%. Loudoun
County was $720,000, up almost 6%. Fairfax County was $662,000, up
only .3%, and Arlington County was up only .7% to $650,000. Alexandria
City was the outlier here, up 26.7% to $665,000.
The third 20:43 video:
It’s Over: The Great Fall of China‘s Housing Market, 40 Real Estate Companies Lose ￥170 Billion
China Observer
Premiered 12 hours ago #chinaobserver #chinarealestate #evergrande
Real estate companies in China have been struggling in the past two years. Debt defaults are frequent, unfinished properties are common, and as the Chinese real estate market enters a winter season, real estate companies are experiencing massive losses.
Recently, Chinese real estate companies released their annual performance reports for 2022. According to statistics, the top 100 real estate companies had a sales volume of only about 7.29 trillion yuan in 2022, a decrease of 40% in scale, and the number of companies with over 100 billion yuan in sales has decreased by 23, leaving only 20 companies. Among the 88 mainland real estate companies specializing in residential property development, 40 experienced net losses after taxes last year, totaling over 170 billion yuan. The losses ranged from millions to hundreds of billions, with six companies losing more than 10 billion yuan, the highest being nearly 29.9 billion yuan. The 40 real estate companies experiencing losses were mostly private companies, but there were also state-owned and central enterprises.
Among them, 29 real estate companies experienced a loss for the first time last year, including large-scale companies such as Country Garden, Sino-Ocean Group, China Minmetals Land, Central China Real Estate, and Kaisa Group.
Although 48 real estate companies still made a profit, their profitability level generally declined, with some companies only earning a few million yuan for the whole year.
China’s Minister of Housing and Urban-Rural Development, Ni Hong, summarized real estate as “456”: “Real estate-related loans account for 40% of bank credit, real estate-related income accounts for 50% of local comprehensive financial resources, and 60% of household wealth is in housing. It can be said that pulling one hair will move the whole body.”
The abnormal development of the real estate industry is not only an economic hazard in China but also a social hazard. The problem now is that if the CCP government lets go and allows real estate to operate according to market rules, house prices will plummet, most real estate developers will collapse, local governments will go bankrupt, and many borrowers who speculated on buying houses will default in large numbers, ultimately leaving banks with millions or even tens of millions of unsold houses. A huge economic crisis and financial crisis unprecedented in history will erupt.
A huge economic crisis and financial crisis unprecedented in history will erupt.
It is really the only possible conclusion to the raising of the biggest pile of rotten debt in history.
A mint of a sublease for State Farm has turned into a lemon.
Tempe, Arizona-based Carvana has terminated its whopping 570K SF sublease with State Farm at the insurance giant’s Park Center Building 1 in Central Perimeter, the Atlanta Business Chronicle reported, citing anonymous sources. State Farm confirmed that it will begin marketing the space again for sublease at the 21-story, 607K SF tower overlooking Interstate 285 in the near future, The Atlanta Journal-Constitution reported.
From the first 7 minute video:
Are China’s Infamous ‘Ghost Cities’ Finally Coming To An End?
SqualidSuburbs
Apr 16, 2023
Since China privatized its state-owned housing stock in the 1990s, setting off a building boom, property developers have worked on the principle of “build it and they will come”. Many city governments took that a step further, erecting new districts with government offices and university campuses on this principle.
Since 2010, when satellite photographs were published showing hundreds of empty new apartment blocks and public buildings, the city of Zhengdong received a barrage of criticism. Years later there are signs of life in Zhengdong: the university campuses are filling up, government officials are behind their desks, and thousands of families have moved into new homes.
Not all is well for China’s ghost cities however, as many populations still remain far below their original growth estimates.
Timestamps:
0:00 Ghost Cities
0:42 Ghost City Overview
1:46 Weird Ghost City Policies
2:56 Who Actually Cares to Populate Them?
4:16 Xi Jingping’s Brain Child
5:42 Are These Cities Hopeless?
The second 10:28 video:
Buckle Up:The Northern Virginia and Washington DC Housing Market is INSANE
Northern Virginia Expert – Chris Colgan
Apr 15, 2023
As we look forward to the busy summer months, the biggest news is
that prices have not significantly dropped as many people had predicted. Interest rates have risen, and most analysts believe one or two more small rate hikes will happen before the Federal Reserve pauses.
While home prices throughout Northern Virginia are still relatively
high, the volume has gone way down and inventory levels are well below their five year averages in most areas. Prince William County has 372 current active listings, well below its five year average of 450. Loudoun County has 401, Fauquier County has 113, Fairfax County has 932, and
Alexandria City has 153, all significantly below their five year averages as
well. Arlington County has 296, roughly in line with its five year average
and the outlier is Washington, DC with 1,694 actives, well above its five
year average of 1,433.
Mainly what we are seeing throughout the area is a flat market, with
listings remaining on the market longer than average. Prince William
County has an average DOM of 21 days, Loudoun and Fairfax Counties 20
days, Alexandria City 25 days, Washington 42 days, and Arlington County
29 days, all well above their five year averages. Fauquier County is the
outlier this time, with 39 average DOM, compared to a 45 day five year
average.
Year over year prices, for the most part, are in line with their 2022
comparisons. Median sold prices in Fauquier County for March were
$500,000, down 11% from last year. Prince William County was $520,000,
in line with a year ago. Washington was $640,000, down 3%. Loudoun
County was $720,000, up almost 6%. Fairfax County was $662,000, up
only .3%, and Arlington County was up only .7% to $650,000. Alexandria
City was the outlier here, up 26.7% to $665,000.
The third 20:43 video:
It’s Over: The Great Fall of China‘s Housing Market, 40 Real Estate Companies Lose ￥170 Billion
China Observer
Premiered 12 hours ago #chinaobserver #chinarealestate #evergrande
Real estate companies in China have been struggling in the past two years. Debt defaults are frequent, unfinished properties are common, and as the Chinese real estate market enters a winter season, real estate companies are experiencing massive losses.
Recently, Chinese real estate companies released their annual performance reports for 2022. According to statistics, the top 100 real estate companies had a sales volume of only about 7.29 trillion yuan in 2022, a decrease of 40% in scale, and the number of companies with over 100 billion yuan in sales has decreased by 23, leaving only 20 companies. Among the 88 mainland real estate companies specializing in residential property development, 40 experienced net losses after taxes last year, totaling over 170 billion yuan. The losses ranged from millions to hundreds of billions, with six companies losing more than 10 billion yuan, the highest being nearly 29.9 billion yuan. The 40 real estate companies experiencing losses were mostly private companies, but there were also state-owned and central enterprises.
Among them, 29 real estate companies experienced a loss for the first time last year, including large-scale companies such as Country Garden, Sino-Ocean Group, China Minmetals Land, Central China Real Estate, and Kaisa Group.
Although 48 real estate companies still made a profit, their profitability level generally declined, with some companies only earning a few million yuan for the whole year.
China’s Minister of Housing and Urban-Rural Development, Ni Hong, summarized real estate as “456”: “Real estate-related loans account for 40% of bank credit, real estate-related income accounts for 50% of local comprehensive financial resources, and 60% of household wealth is in housing. It can be said that pulling one hair will move the whole body.”
The abnormal development of the real estate industry is not only an economic hazard in China but also a social hazard. The problem now is that if the CCP government lets go and allows real estate to operate according to market rules, house prices will plummet, most real estate developers will collapse, local governments will go bankrupt, and many borrowers who speculated on buying houses will default in large numbers, ultimately leaving banks with millions or even tens of millions of unsold houses. A huge economic crisis and financial crisis unprecedented in history will erupt.
A huge economic crisis and financial crisis unprecedented in history will erupt.
It is really the only possible conclusion to the raising of the biggest pile of rotten debt in history.
A mint of a sublease for State Farm has turned into a lemon.
Tempe, Arizona-based Carvana has terminated its whopping 570K SF sublease with State Farm at the insurance giant’s Park Center Building 1 in Central Perimeter, the Atlanta Business Chronicle reported, citing anonymous sources. State Farm confirmed that it will begin marketing the space again for sublease at the 21-story, 607K SF tower overlooking Interstate 285 in the near future, The Atlanta Journal-Constitution reported.
https://www.bisnow.com/atlanta/news/office/carvana-backing-out-of-massive-central-perimeter-sublease-118535