Sunday, 10 January 2010
A city. Built in 5 years. For 1 million people. And no-one's moved there. The prices are too high. The response? "They don't look at it as a place to live... they see it as a place to put their cash."
That right there, ladies and gents, is the basis of the whole global property boom... and the reason its going to fall flat on its arse. And it's the reason why state intervention is comical, and why China will not be the oft-predicted powerhouse of the 21st century.
Property has never been an asset. Because of tax avoidance reasons, etc, it's been useful for some. But it's a liability. It's a place to live. You never own property anyway. Just try not paying your property taxes - you'll soon find out who really owns it.