Under-occupied developments in China

This is a list of property developments in China which remain mostly unoccupied, sometimes referred to as "ghost cities." They are also frequently referred to in the media as "ghost towns", but this usually refers to abandoned places rather than new ones which have failed to attract a population.

Background

The way property values are structured in China plays a role in the creation of "ghost cities", according to author Wade Shepard, who has traveled widely to research the phenomenon of China's underoccupied cities. "Economically affordable housing" must be lived in by the owner, and can not be bought and sold as an investment. The developer is only permitted to sell "economically affordable housing" at 5% over the cost of construction. By contrast, "commodity housing" can be bought and sold as an investment. Because housing is a physical object, and China's large population guarantees an ongoing demand for housing, commodity housing is considered a more secure way of storing money. "Commodity housing" purchased as an investment generally sells, with the exception of some Tier 3 and Tier 4 cities which have different government regulations.

Construction of "commodity housing" is driven by the disparity between urban and rural land prices. Rural land, which must be collectively owned, is redesignated by a municipality as urban construction land, which can then be resold by the municipality at as much as forty times the price. He explains that municipalities must pass on about 40% percent of their tax revenues to Beijing, and are responsible for about 80% of their expenses. Hence there is an incentive to seek non-tax income streams. According to Shepard, as of 2015, "40% of the revenue that local governments in China make is from land sales." The Party further incentivizes construction on this newly urban land by using local GDP growth as one of the indicators that makes a local government look good within the Party.

List of cities

• Chenggong District is the chief zone for the expansion of the city of Kunming. As of 2012, much of the newly constructed housing in Chenggong was still unoccupied, and it is reportedly one of the largest ghost towns in Asia. However, some commentators expect it to become occupied over the next few years, as central Kunming is overcrowded. Some Government departments are to move to Chenggong in 2012, and a subway line to the city center opened in 2013.

• Dantu in Zhenjiang, Jiangsu province, has been underoccupied since around 2005, but as of 2015, has businesses in its shops.

• Ordos City is a large city with abundant infrastructure in Inner Mongolia. It is little used by residents and frequently described as a 'ghost city'.

• New South China Mall in Dongguan is the largest shopping mall in the world based on gross leasable area. However, it has been 99% vacant since its 2005 opening as very few merchants have ever signed up. In 2015, CNN reported that the mall was filled with shops after extensive renovations and remodelling of the facility.
• Nanhui New City
• Yujiapu Financial District
• Kangbashi New Area

See also

• Chinese property bubble (2005–2011)
• Housing in China
• Real estate in China
• Spatial mismatch

Further reading

• Shepard, Wade (2015). Ghost Cities of China: The Story of Cities without People in the World's Most Populated Country. Zed Books. ISBN 9781783602186.