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The “Ghost Towns” In China

Updated on November 24, 2014

What Is The “Ghost Town”?

As the boost of urbanization in China, there are more and more new city areas constructed with high standard came out. But due to a lot of reasons, many of these new city areas have high vacancy rate, with few people live in residential buildings these areas are as black as one’s hat in night. So these city areas are vividly called “ghost towns”.

The Most Famous “Ghost Town” In China-The New City Area Kangbashi of Erdos

Erdos which means numerous palaces now has estates which are suspending every where.

The new city area Kangbashi which costed more than 600 billion in its forge now has few people in its broad streets. This ten-year forged new city area now became the best model of the estate bubble of Erdos. Here you can see the high residential buildings one next another but there are so few people live in them and everywhere is the scene of the decline. The new city area which is 32 square kilometers in scale and million population in plan now has less than 100,000 population. When the night falls, more than 70% of the city area is dark. On the square, there are more tourists than local people in the daytime.

Before 2004, Kangbashi was a desert back then and has only two little countries with population less than 1,400. When the first foundation set up in 2004 the estate market in here became out of hand. The large number of funding flew into here and the face of a new city area gradually appeared.

According to the public data, the investment put into the projects of city construction in Erdos exceeded 15,000 billion in 2012. And this data was 8,000 billion in 2010 and 1,070 billion in 2011. The local financial revenue of Erdos was 3,650 billion, 5,380 billion and 8,100 billion in 2010, 2011 and 2012. That means the local spent the money twice its financial revenue into city construction every year.

Compared with the city construction the estate exploitation seemed more crazy. Under the driving of city construction there are many estate projects which were put into construction since 2005. The new construction area reached 13 million square meters and the total construction reached 23 million square meters. The total investment is 4,500 billion and the plan saling area of commodity building are 12 million square meters. The house price reached more than 7000RMB/(square meter) in average in 2010 and some districts’ house price break through 20,000 RMB/ (square meter).

From 2005 to the first half year of 2011 are the prosperous times and the rich people from all over the nation drew close to Kangbashi new city area.

But since the latter half of 2011 the estate market of Erdos became to sharply fell. The house price of Kanbashi fell down to 3000 RMB/ (square meter) and even so these buildings can’t be sold.

The Reasons For The Appearance of “Ghost Towns”

In recent years, Chinese government has been paying attention to the construction of urbanization. Because of the big gap of life quality between country and city, more and more people are swarming into city and more and more cities has been being expanded. And in light of the traditional concept of Chinese people that only own their own houses a family can be stable, the real estate ushered a very big market and many estate agents raced to invest into it. Some experts said that almost every big city has a new city area now and the plan of land covering and population number are even far more than the old city area.

In theory, though the number of estate investments and exploitations are very large, according to the level of estate demand of Chinese people there should not be the phenomenon of “ghost towns”. So what are the reasons of the large-scale appearance of “ghost towns”?

Firstly, these areas are lack of industrial support. There are few factories, few marketplaces, few restaurants, there are only houses so they can not attract people to live in there. The purpose of rural people in China is to integrate in city life and live in a city town which has no industrial but only houses does not mean integrate in city life.

Secondly, in recent years, the super big city in China like Beijing and Shanghai develop so quickly and they provide a lot of job opportunity for people, so many young people choose to go to these cities and get them good jobs and good development prospects. The large floating of people out of many cities attribute to the appearance of “ghost town” in a way.

Thirdly, to make more money, many estate agents price their house very expensive and think no matter how expensive are their houses there should be people who would like to buy them like what is happening in famous big cities. But actually they are wrong. People have no much money to buy these houses though they are urge for houses. Many people must save money for more than 30 years to buy a house so a large number of estates are unsalable.

What Do You Think Is The Uppermost Main Reason of The Appearance of The “Ghosts Towns”?

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How To Solve The Problem of The “Ghost Towns”?

The appearance of the "ghost towns" is the result of local governments participating in the estate market and hope to utilize the estate market to stimulate economy development. The truth showed that when government tried to control the market it is very possible to contort the market. It seemed that the estate market of Erdos was very prosperous but this kind of economy development broke away from the real condition of local economy so it is not strange the “ghost town” appeared.

The appearance of the “ghost towns” is the bad result of using government power to effect the economy. So to solve the “ghost towns” problem the government should change its custom to effect the local economy. The boost of the urbanization is not to digest the inventory but to make rural people live a modern life. If the rural people swarm into the city but can’t find jobs then the new social problems will appear.

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