“Ghost Cities Across China: Scholars Analyze Real Estate Ponzi Schemes”

China’s real estate market continues to decline, with “ghost cities” (abandoned areas) becoming a common sight. Foreign media reports reveal that the number of empty housing units across China ranges from 80 to 90 million. Scholars have described China’s real estate development model as a “Ponzi scheme” that is set to have a “huge” chain reaction on the country.

Recently, reporters from Epoch Times searched for the latest information on “ghost cities” on Chinese social media platforms.

On March 23, a Chinese blogger named “Sunlight Explorer” uploaded a video showing an abandoned residential complex with overgrown weeds, sealed unit doors, and empty rooms, creating a spooky atmosphere even during daylight.

In Yunnan’s Qujing, another real estate blogger, “Phoenix Yang Yang,” discovered a completely deserted residential complex with no signs of life, making the area eerie and unsettling, even in broad daylight.

In Jiaxing, Zhejiang, a property blogger filmed a video on March 22, predicting a future where many uninhabited high-rise buildings will populate the city due to oversupply and dwindling population.

Reports suggest that China’s real estate market froze around 2020, with an estimated 60 to 80 million vacant homes and several million properties left unfinished, exacerbating economic slowdown pressures.

According to a report by the Wall Street Journal, economists estimate that China currently has up to 90 million vacant housing units, with about 31 million fully or partially completed units left unsold and another 50 to 60 million homes purchased but sitting empty.

Sarah Williams, an associate professor of technology and urban planning at MIT, compared China’s real estate development to a Ponzi scheme, where developers take on excessive debt to fund new projects while struggling to sell existing properties in a market oversaturated with housing.

The emergence of small-scale “ghost areas” scattered across China poses a significant threat to the country’s economy, reflecting misallocation of resources and overinvestment that could have far-reaching consequences on the overall economic stability.

In 2014, a ranking of “Ghost City Index” was released, listing cities in China that might become ghost cities in the future due to low population density in relation to built-up area size.

Mark Lin highlighted five Chinese “ghost cities” in 2025 based on real situations, such as Langfang in Hebei, Sanya in Hainan, Gui’an New Area in Guizhou, Yiwu in Zhejiang, and Binhai New Area in Tianjin, where high-rise buildings stand empty despite substantial investments.

As per official statistics, China’s residential vacancy rate continues to rise, impacting both the rental housing market and property sales, with average rental prices in major cities declining.

Economic uncertainties, high unemployment rates, and a sluggish rental market have further contributed to the increase in housing vacancies, leading to a drop in rental prices nationwide.

Financial reports from mainland China indicate a decline in rental demand due to weak income growth expectations, particularly in provinces like Beijing and Jiangsu, where property income has seen negative growth.

The challenges faced by China’s real estate market reflect a broader economic slowdown and structural issues that require substantial reforms to stabilize the housing sector and address oversupply concerns.