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Transcript
00:00China is facing a housing crisis. If you think housing is unaffordable in your home city,
00:05it likely has nothing on the major hubs within the People's Republic.
00:09It must be remembered that China is still a relatively poor nation,
00:12and most workers there do not own very much money, at least by developed nation standards.
00:17The most unaffordable city in the US is New York, where an average home costs 10 times the average
00:22household income. In Shenzhen, the average home is 46 times the average household income.
00:28This has been driven by property investment gone mad, where as many as three family
00:32generations will work to save a deposit to invest into a home.
00:35It's for this reason that the Chinese government has proposed a property tax in an attempt to make
00:39hoarding real estate a less desirable investment strategy. This may prove to be particularly
00:44effective because on top of this tax, you never actually own land in China, you just rent it from
00:49the government for up to 100 years. So if you really think about it, there is kind of already
00:54a 1% annual tax on property, it's just one that most people today won't be alive to pay.
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