As the world’s most indebted real estate company teeters on the brink of ruin, attention has so far focused on how its failure could send shockwaves through global markets.
There has been much talk of Chinese property behemoth Evergrande – which has managed to rack up mind-blowing debts of $408 billion – facing its “Lehman moment”, with experts fearing it could trigger a worldwide financial crisis.
Real estate glut
Rhodium Group director Logan Wright recently told the Financial Times that China now had enough empty property to house more than 90 million people.
“So if you do assume that they are trying to take this problem seriously, then it would suggest that we should be preparing for a lower rate of growth in the future, especially from property construction,” he then told the ABC’s China Tonight.
“In many ways, Evergrande is sort of a symptom of a broader problem in the property sector in terms of the imbalance between supply and fundamental demand.”
Link - https://www.news.com.au/finance/eco...l/news-story/c11fdf966f666b642610308edb8592de
