In yet another epsiode of the unfolding China Property Crisis, Country Garden has warned that it might not be able to meet all its debt obligations. This is due to Country Garden experiencing slowing home sales which means it does not have enough cash receipts (inflow) to meet debt repayments (outflow)
Sales to Generate the Cash flow for Repaying Debts
As China developers have disclosed, there is a lack of sales and this is due to the destruction of speculative demand especially in Tier 3 and 4 cities. This means only real demand based on population needs is left and the truth is these cities do not need these excess apartments based on their population numbers.
Immigration is the Solution
If there is insufficient demand, the solution is to increase the population to generate more demand. Following the example of Singapore, Singapore opened the immigration floodgate which led to an increase in rental demand for both its private and public housing markets....