China’s Newest Real Estate Investment Craze: Detroit’s Housing Crisis
|November 9, 2013||Posted by Staff under High Cost of Land|
Detroit has been losing manufacturing and people. Prices of homes+sites have plummeted, while foreclosures continue to skyrocket. China’s real estate-hungry buyers see an investment opportunity.
After announcing that the city filed for bankruptcy on July 18, Detroit property has been a hot topic on China’s social media platform, Weibo. This news, compounded with a television news segment aired on state-run CCTV back in March that said a price of a pair of leather shoes could get you two houses in Detroit, got many people moving their money from the mainland to the Midwest.
In true Chinese fashion, they are looking to buy up in bulk; one bought 30 properties. Buyers seem to be purchasing purely as investment, and don’t plan on moving to Motown anytime soon.