Enough vacant housing in China for 200M

[Their housing bubble is like ours, except that they can afford theirs and their empty space is all new multiple level units, not sought after by the Chinese.]

There Are Now Enough Vacant Properties In China To House Over Half Of America
Vincent Fernando
Sep. 8, 2010, 6:34 AM

Property stocks in China were weak today due to media reports that the Beijing and Shanghai authorities were investigating the high vacancy rate for Chinese property. Markets are worried they'll be shocked by what they discover and clamp down on speculation even harder than they have.

How large might the vacancy problem be? Here's a taste:

Finance Asia:

Recent statistics show that there are about 64 million apartments and houses that have remained empty during the past six months, according to Chinese media reports. On the assumption that each flat serves as a home to a typical Chinese family of three (parents and one child), the vacant properties could accommodate 200 million people, which account for more than 15% of the country’s 1.3 billion population. But instead, they remain empty. This is in part because many Chinese believe that a home is not a real home unless you own the flat.

And so people prefer buying to renting, and as a result, the rental yield is relatively low.

Why would so many properties be held vacant? They're seen as long-term investments, even if renters aren't available. This is due to the dearth of investment options available to most Chinese, butting up against their rapid wealth creation.

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Read more: http://www.businessinsider.com/there-are-now-enough-vacant-p...