China continues to implement mega projects “for growth”, thus at the same time stimulating their economies. In Inner Mongolia built city Ordos, designed for 1 million people. Now live in it 20 thousand, 98% of the buildings are empty.
In China many cities , shopping malls – and airports-Ghost — huge infrastructure projects, vacant for years. Chinese authorities announce that these objects can “grow”, and sooner or later they will fill people, clerks, passengers or tenants. At the same time, the government artificially “accelerates” the economy — such infrastructure projects (here also include roads on which few rides; warehouses filled to the eyeballs with copper or aluminum etc.) added to annual GDP growth of 1-1.5 percentage points.
The city of Ordos in Inner Mongolia province began to build in 2003. Despite the fact that in this province the Mongols constitute only about 17%, the city decided to erect it in the Mongolian style.
As a result, by 2010, the area 355 square kilometers of the city was built, designed for 1 million people. However, by the end of 2013, Ordos was inhabited by only 2% — it lived 20 thousand people.
The main investor and developer in 2008-09 mounted housing prices here in the 10-11 thousand dollars per square meters, now it has dropped almost 2-3 times — up to 4-4,5 thousand dollars. However, these prices are unaffordable for the majority of citizens of the province of Inner Mongolia, where the average salary is about $ 400-500.
Part of empty space in Ordos intends to buy the Chinese government for retired military, but there will be no more than 20-25 thousand people .
All these 3-5 years after the commissioning of the operating companies are compelled to incur losses by serving the infrastructure of the empty city — repair, street cleaning, security, street lighting, landscaping, etc. — and it is up to 10-12 thousand dollars a month. The money to the developer allocated to the Chinese state-owned banks in the form of low-interest loans.
The Ordos project was initiated in the region Kangbashi after they found huge reserves of coal and other minerals. The area was instantly built office skyscrapers, administrative centers, government buildings, museums, theaters and sports facilities.
It was also built many residential areas with beautiful houses for middle class people. The only problem is that this area was intended to stay 1 million inhabitants, and now there is virtually no one lives.
With the pace of settlement, it is now the Ordos will be fully populated in 40-50 years.