Quote:
Originally Posted by Caliplanner1
...and (silly me) to think that the local economy was "booming" via BUSINESS GROWTH (even in terms of optics) as a partial function of foreign investment (weather from American tech firms here or the economic multiplier effect when foreign real estate spending positively impacts the local construction/housing materiel or input supply chain industries etc.)?
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foreign real-estate investment from China hasn't done anything except drive prices up, increase the vacancy rate, and decease the urban canopy ~3% in ~20 years.
yes, sure, construction is great. but no one can afford to buy those places with either acquiring lots of debt, moving from a place they bought many years ago, or rich Chinese people.
tech firms is new and has nothing to do with local politicians. but with the cost of rents going up so much firms are moving to other places and local "mom and pop" shops are closing down. Robsonstrasse is really no more.
so we get a lot of cheaply made, over priced glass boxes, and not enough of them because of government policies. and the demand for them keeps going up due to government lack of policies.
now interest rates are going up at a time when house hold debt is so high due to the housing market being over inflated. that isn't a good recipe for people.