China’s slowing real estate sector is pushing its major developers away from property towards things like avant-garde art and cosmetic surgery. Yes, really. (If only they could give the local real estate industry a facelift.)
Moody’s Analytics says China’s housing sector dropped from 23% of the GDP to 18% of the GDP in 2014. Beijing economist Ma Guangyuan says China went from its “economic growth engine into its burden,” the Wall Street Journal reports.
Overdevelopment and weak demand has developers changing identity completely: Lander Real Estate became Lander Sports Development, and now plans to invest in women’s soccer. Developer Lek Yuan Group diversified first by throwing cash into water-skimming planes, then modern art.
Asked his thoughts about commercial real estate, Lek Yuan chairman Yan Lugen says, “these are my heartfelt words: I do not want to earn money in such an exhausting way anymore.” [WSJ]
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