Ghost City Developer Falls

China's first satellite city becomes a ghost city, developer Zhejiang Guangsha stumbles and its founder is carted away.

'China's Paris' turns into a ghost city
A residential area has been built in China with architectural designs copied from Paris along with a replica of the iconic Eiffel Tower. Designed to accommodate at least ten thousand residents, it is now considered a 'ghost town', reports Reuters.

Built in 2007 by real estate company Zhejiang Guangsha, the residential area with European-style villas was built to attract the country’s wealthy people.

However, the town now has a population of just two thousand people as many people are not able to afford the houses in this area.

iFeng: 中国第一卫星城十年变成鬼城 创始人被带走 (China's first satellite city becomes ghost town, creator taken away)
A person familiar with the project, local residents said:. "Tianducheng property management side of chaos, can not keep living facilities, transportation inconvenient, if the northwest waste incineration plant is built, that is truly going to become a ghost town in the vicinity Tianducheng area, all the way to the road from Dexing Jiubao are developing, River Road is also a large demolition, Houren street built a large new house. Tianducheng in the most awkward location. Only when the original hottest real estate, just to get to there are people who built berserk era can sell right now, hard! "

The development became an albatross for the firm, which saw sales slump in 2014 thanks to Zhejiang province being ground zero for the real estate slowdown.
According to the data Keer Rui Yi Ju research agencies show that total 2013 sales of real estate projects in Zhejiang Guangsha 1.8714 billion yuan, in 2014 total sales of 1.13297 billion yuan, compared to shrink from 2013 by about 1/3. And the company's 2013 sales area of ​​242,973 square meters, compared with 140,347 square meters in 2014, dropped by about 40%.

Creator of the ghost city, Lou Zhongfu, has been detained.

China Billionaire Builder's Share Suspension Enters 2nd Week Amid Reported Probe
The suspension of trade in shares in Zhejiang Guangsha, the builder controlled by Chinese billionaire Lou Zhongfu, entered a second week at the Shanghai Stock Exchange today after Lou was reportedly taken away by officials from the government’s top anti-corruption body on Dec. 27.

Lou was said to have business dealings with Gu Liping, the wife of Ling Jihua, the government-published China Daily reported last Wednesday. Ling, a former top advisor to former President Hu Jintao, is under investigation for alleged disciplinary violations, the paper said.

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