Beijing's Olympic Building Boom Becomes A Bust

Mish has some similar observations ( see Inside China: A Sculptor's View ) . Lets hope that only a tiny percentage of the recent credit explosion ( see Number Of The Day "Credit Explosion In China" ) will find the way into anything related to real estate........

Da Mish ähnliche Erkenntnisse hat ( siehe Inside China: A Sculptor's View ) dürfte klar sein das nicht nur die wetlichen Banken insolvent sind....... Bleibt zu hoffen das zumindest nur ein kleiner Bruchteil der letzten Kreditexplosion ( siehe Number Of The Day "Credit Explosion In China" ) seinen Weg in den Immobilienmarkt findet......

Beijing's Olympic building boom becomes a bust LA Times
Reporting from Beijing -- "Empty," says Jack Rodman, an expert in distressed real estate, as he points from the window of his 40th-floor office toward a silver-skinned prism rising out of the Beijing skyline.

"Beautiful building, but not a single tenant.

"Completely empty.

"Empty."

So goes the refrain as his finger skips from building to building, each flashier than the next, and few of them more than barely occupied.

Beijing went through a building boom before the 2008 Summer Olympics that filled a staid communist capital with angular architectural feats that grace the covers of glossy design magazines.

Now, six months after the Games ended, the city continues to dazzle by night, with neon and floodlights dancing across the skyline. By day, though, it is obvious that many are "see-through" buildings, to use the term coined during the Texas real estate bust of the 1980s.

By Rodman's calculations, 500 million square feet of commercial real estate has been developed in Beijing since 2006, more than all the office space in Manhattan. And that doesn't include huge projects developed by the government. He says 100 million square feet of office space is vacant -- a 14-year supply if it filled up at the same rate as in the best years, 2004 through '06, when about 7 million square feet a year was leased.