China suffering from housing crisis

Not long ago this entire area was farmland, now it's a case study in how cruel the Chinese property boom can be. Many here struck a deal with a developer to acquire their land in exchange for new homes in the skyscrapers that sprung up eight years later. It's not over yet, the people here are still stranded in a thriving community in Dawang Zhong Village, but it exists in the shadows of what they were promised. Some, including the elderly, have shelter in this temporary accommodation. This is where we meet Wong Fong and his mother. His old house is long. demolished, now she is looking for work and struggling to get ahead, she needs the house they owe her, so it's been a long time.

He showed us the inside of the small space where his mother now lives. It's damp and full of rats. She explains that it is much worse than what they abandoned. Outside, the remains of shattered lives are everywhere in China, developers have come close to collapsing, leaving people to pick up the pieces. Many like this elderly woman now face skyrocketing rent while they wait. She did not have these expenses before her house was demolished. Now she has to pick up rubbish to make ends meet meetings abroad the government has stepped in with a huge financial package to help restart the suspended activity, but many here and elsewhere believe only a few workers are being sent to maintain appearances, we saw only a handful, are not the most Throughout this city there are striking signs of how flawed the Relentless model of borrowing and construction can be.

Look here, the money has simply run out and the reality is that the Chinese real estate market, which for so long was an engine of growth, is now a real burden, but incredibly so. people are still investing like the obsession with property here this guy works for a developer building another block around the corner he didn't want to show his face how sexy we currently are you and I are cameras um that relaxing will ease the short- pain in the long term, but in the long term it makes booms and busts more likely. There is a systemic problem here and it is the people who are paying for it.

Helena Smith Sky News injenjo