Empty Cities: China's phony construction boom

[cfa]

Residential property is an expense because it doesn't produce cashflow generally, unless you have an investment property. That's why a bubble (vs gradual inflation beating appreciation) in residential is almost always bad because it is just funny money capital gains, feel good wealth effect with no cashflows nor value added productions (except of course commissions and constructions).

Nonetheless my point is that though it is a problem in China, it is not as dramatic as the west painted it to be. They don't understand Chinese obsession with real estates, as they understand correctly that it is an expense to be managed.

I always read western article on property bubble in China, with a pinch of salt. The value of "Home" is quite different between Westerner and Chinese.

Bubble is there, but not as bad as painted, especially so in tier-1 cities, IMO.

But could all these evidences be untrue ?

http://www.youtube.com/watch?v=pbDeS_mXMnM