Vacant New Condo Tower in San Francisco: Tentacles of China’s Z&L Properties Collapsing Property Developers Reach Deep into US Cities | Wolf Street

It’s kind of funny actually, to put “housing shortage” into the same sentence with “such a soft market,” given that there over 40,000 vacant housing units in San Francisco, which has caused such an uproar that folks are now trying to put a vacant-home tax on the ballot. Add to these vacant housing units the completed but vacant and boarded-up 109-unit condo tower, The Oak, that Z&L Properties built.

The property development industry in China, tripped up by ridiculous speculation and leverage, has been in slow-motion government-controlled collapse. China’s Evergrande was the first big developer to shake up bondholders of foreign-currency bonds last year, and by now foreign bondholders have taken massive losses on their bets on China’s property developers.

Oceanwide’s huge project in Los Angeles, the Oceanwide Plaza, which is nearly complete, has been financially troubled but still hasn’t been seized by creditors. But Oceanwide’s Manhattan project has been seized by creditors. There are other projects in major US cities by property developers based in China that are now tangled up in the meltdown of property development in China that has been bleeding into the US real estate market.

Vacant New Condo Tower in San Francisco: Tentacles of China’s Collapsing Property Developers Reach Deep into US Cities | Wolf Street