With China biggest real estate company collapsing - our housing hope gone

[RV Pundit]

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[Kadudu]

What does that have to do with Kenya's housing scheme?
Evergrande is mainly present in China and is the equivalent of Cytonn in Kenya. Collect from investors, then build the housing schemes. Will have no effects in the world market, but consequences in China as reals estate investors burn their fingers.
Those thousands of empty highrise buildings are not a good sign for good investments.

[RV Pundit]

You havent been to Nairobi lately. Many house in Kilimani and Westland are by Chinese. I dont know how and where they get money from - but definitely it must be from China banks.

GTO in Westland is 40B investment - and they have shares in Two Rivers.

Ederrman Chinese tycoon is building 9 34 floors unit in Ngara...he already has put up 3,000 units in Greenwall Athi River.

And I think Jubilee housing was pegging on the same - bringing in developer - hopefully Chinese to invest in housing.

Yes China are facing a different problem - of too much housing - we have a problem of housing deficit.

What does that have to do with Kenya's housing scheme?
Evergrande is mainly present in China and is the equivalent of Cytonn in Kenya. Collect from investors, then build the housing schemes. Will have no effects in the world market, but consequences in China as reals estate investors burn their fingers.
Those thousands of empty highrise buildings are not a good sign for good investments.

[Kadudu]

Erdemann founder spent some years in Germany. The name of the firm is German and practically means earthworks man. His funding is of course from China. That is part of China's expansion plans, provide its people with cheap loans to go and conquer the world.

Many of the Chinese investments in Kenya are also from Chinese businessmen's profits they make in Kenya. Investing in China is very risky for such people. The Chinese govt can confiscate all your properties without any warning or force banks to recall your loan anytime. So Chinese tend to invest a lot in foreign countries away from the Communist party.

Also note the Chinese govt is ready to let Evergrande go down. It shows the confidence of the Chinese govt that the markets will not be very turbulent. Also it will teach the turbo capitalists a lessonand their investors too.

[RV Pundit]

Yes, as long as they dont close taps for foreign money outflow, we are probably good. I understand china gov concern with housing sector overheating - because nearly every china man has bought 2 or 3 houses - and all are now empty. When gov crackdown on chinese - the developer were left with unsold houses. It's huge mess - of excess supply. They have incredible building machinery.

One hope they can bring it to Kenya where we have housing deficit.

Erdemann founder spent some years in Germany. The name of the firm is German and practically means earthworks man. His funding is of course from China. That is part of China's expansion plans, provide its people with cheap loans to go and conquer the world.

Many of the Chinese investments in Kenya are also from Chinese businessmen's profits they make in Kenya. Investing in China is very risky for such people. The Chinese govt can confiscate all your properties without any warning or force banks to recall your loan anytime. So Chinese tend to invest a lot in foreign countries away from the Communist party.

Also note the Chinese govt is ready to let Evergrande go down. It shows the confidence of the Chinese govt that the markets will not be very turbulent. Also it will teach the turbo capitalists a lessonand their investors too.

[Georgesoros]

The're heavily dependent on Real Estate for growth, so every cranny bought a house - Speculators bought several. It'll definitely affect every market in the world. More pple will try to sell ASAP further sinking prices

[RV Pundit]

Yes construction is like 50 percent of GDP..they need to transition to consumption..Chinese like many Asians are super savers and don't like spending money..maybe CCP will force them to spend somehow.Maybe reduce the working time so they can travel more..and spend..they too frugal for their own good