Understanding China, One Blog at a Time

An American in China

China’s Property Market Crash-Ordos Falls

Posted by w_thames_the_d on August 30, 2012

From wantchinatimes.com

Kangbashi New Area in the city of Ordos in Inner Mongolia is a suburban area full of unfinished buildings, the construction of which ground to a halt in October last year, reports the China Economic Weekly in Beijing.

The weekly quoted a local source as saying there are buildings with total floor area of 22.25 million square meters under construction in the city as of November, including 10.05 million square meters of recently begun projects.

At present, construction on 80% of them had stopped due to a lack of funds. Deserted construction sites are everywhere in the city,and the few people remaining on these sites are likely to be creditors looking for the owners of the construction companies to demand repayment of their loans, said the source.

The sales manager of a half-completed building told the weekly that the price of the building was 10,000 yuan (US$1,580) per square meter last year, while the current price is unknown because nobody wants to buy it.

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