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The Problem Of Ghost Cities

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The most populous country in the world is constructing houses, districts, and cities with no one in them. Ghost cities is probably the wrong word to describe these unoccupied cities. Since Ghost cities/towns typically mean people have completely abandon the city/town. These cities have yet to be lived in. Many people in the financial world are nervously looking at China. They are building 12-24 new cities each year. The concept they have is to build now and sell later. The assumption is if you built it they come, but no one is coming. Other city housing markets follow the supply and demand rule, but in China the prices stay high. Kenneth Rapoza (2015) stated in the Forbes article, “Anyone can build a useless overpass, but it takes China to build a city for a million people with no buyers in sight.” China has constructed a fake Paris, just South of Shanghai. The impressiveness of this replica of Paris is not only an expensive knock off, but that it has been completely abandon. Basically, tourist only come here for wedding pictures and curiosity seeking. This fake Paris isn’t the only city that has a 2% occupancy rate or lower. Thames town that was built like an English village, finished about 5-6 years ago is still standing and completely empty. Not to mention that it cost close to a billion in U.S. dollars. These replica cities are just one of the many marketing strategies of China’s real estate. Another example of how they reel in potential buyers, by putting up the

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