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There's no rational financial calculus going on.

It's part of the Pacific Ring Asian hot-money bubble. Same as in Vancouver and Sydney. /r/vancouver has some good investigatory articles

$2 trillion left China illegally, and this is where some went

This doesn't end well, by the way. Neighborhoods turn into ghost towns because "renters damage property". Great businesses close. Vancouver had something like 30 empty multimillion dollar houses burn down last year.




Are they burning the houses for insurance fraud, to cash out and essentially launder the money?


I think it's more accidental fires from squatters.




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