A Tsinghua University professor posted the following stunning fact on Sina Weibo (via Global Macro Monitor).
In 1989 the value of China’s land sales was $70 million. By 2010 land sales were worth $470 billion — a 6,700-fold increase.
This increase reflects a ridiculous surge in land values and growing use of land sales by local governments for revenue. The professor also found that land sales had risen from 0.24 per cent to 74 per cent of local government financing.
This land is mostly coming from farmers, as many as 140 million of whom had their land confiscated in the past 17 years. Cities turn around and sell land to developers who build giant ghost cities. Worried yet?