China's real estate crisis, caused by a crackdown on risky behavior by home builders and a subsequent housing slowdown, is spreading to the broader economy, leading to sinking sales, disappearing jobs, and a decline in consumer confidence, business investment, and stock markets.
China's property market is seeing strong sales and rising rents, indicating a continuing demand for housing that pessimists are missing, according to veteran economist Hong Hao.
China's largest private real estate developer, Country Garden, is in financial trouble, missing bond payments and posting a record loss, signaling further concerns about the country's property sector as housing prices and foreclosures continue to rise, while other economic indicators, such as industrial output and retail sales, fall short of expectations; these developments are raising concerns about the overall health of China's economy and its future growth prospects.
China's weak economy, including an unstable property market and weak consumer demand, is posing risks to global markets and economies like the US, according to experts.
China should continue to prioritize the principle of "houses are for living in, not for speculation" to prevent potential negative impacts on economic and social development, according to an editorial in the state-run Economic Daily, as the country faces a downturn in the property sector and potentially unwinding some curbs.
China faces challenges in rebalancing its economy towards increased consumer spending due to the economic growth model that relies heavily on investment in property, infrastructure, and industry, as well as the reluctance of households to spend and the limited social safety net; implementing demand-side measures would require difficult decisions and potential short-term pain for businesses and the government sector.
China's current property crisis is not as severe as the 2008 Lehman Brothers collapse, according to the Taiwan Institute of Economic Research (TIER).
China's property developers are facing a debt crisis and the country's economy is in a worse state than it was in the 1970s, raising concerns about a broader financial crisis, according to analyst Charlene Chu.
China's hybrid economic model, which combines state planning with market forces, is facing challenges as the country struggles with weak economic indicators, including high youth unemployment and falling prices, and the property market experiences financial distress due to government interventions and market dynamics; policymakers must implement short-term measures to boost market confidence, such as managing property-sector defaults and easing housing investment restrictions, while also undertaking long-term structural reforms to address moral hazards, promote fiscal responsibility, and protect private businesses and foreign investors.
China's property crisis has left small businesses and workers owed hundreds of billions of dollars, with suppliers waiting on at least $390 billion in payments, as new projects dry up and financial troubles plague real estate developers like Country Garden.
China is planning to relax home-purchase restrictions and implement new measures to address the debt crisis in its property sector, which accounts for a quarter of its economy, in an effort to boost consumer demand.
China's economy is facing numerous challenges, including high youth unemployment, real estate sector losses, sluggish growth in banks, shrinking manufacturing activity, and lack of investor confidence, indicating deeper systemic issues rather than cyclical ones.
China's relief measures to support the property sector have spurred a home-buying spree in Beijing and Shanghai, with transaction volumes in both cities increasing significantly, indicating robust housing demand; however, concerns persist that this demand may not be sustained due to other restrictions and a faltering growth outlook.
China's housing crisis has led to a record number of defaults among the country's private developers, with 34 out of the top 50 developers experiencing delinquencies on offshore debt, and the remaining 16 facing a combined $1.48 billion of bond payments in September, raising concerns about a potential bond default by industry giant Country Garden and the potential ripple effects on the broader economy and social stability.
China's real estate sector is facing a split market, with sales picking up in larger cities while slowing down in smaller cities, but further policy support is expected to stabilize the finances of property developers and dispel financial panic in the next two months.
China's economy is expected to grow less than previously anticipated due to struggles in the property market, leading economists to predict further downgrades and posing risks to both the domestic and global economy.
China's real estate and construction sectors are struggling, leading to fears of economic stagnation as consumer spending declines and other areas of the economy are not growing fast enough to make up the difference.
China's recent policies to stabilize the property sector may not be enough to stimulate real economic growth, although they could generate demand, according to analysts.
China's property sector continues to struggle with deepening falls in new home prices, property investment, and sales in August, despite recent support measures, adding pressure to the country's economy.
China's housing crisis continues as thousands of building projects are halted or slowed, leading to defaults and restructuring, a loss of confidence in the market, and a decline in sales.
China's largest developer, Country Garden Holdings, is facing a major crisis as it struggles with a mountain of debt repayments, a slowing property market, and negative sentiment towards the sector following defaults by other Chinese peers; the company's focus on smaller cities has become a disadvantage as the housing market faces a potential decline.
China's population of 1.4 billion would not be enough to occupy the vast number of empty apartments in the country, according to a former official, highlighting the ongoing crisis in the property market.
China's property market is facing a crisis with an overwhelming amount of unsold homes, surpassing the number of people in the country, as the sector continues to slump since the default of China Evergrande group.
China's former deputy head of the statistics bureau estimates that there are up to 3 billion vacant homes in the country, highlighting the out-of-control property crisis that has caused a decline in tax revenue and a rise in unemployment.
China's property sector has slumped since 2021, with big-name developers teetering close to default and an abundance of vacant homes that even China's population of 1.4 billion can't fill, according to a former official.
China is facing a housing crisis with rows of empty homes, leaving the country with an estimated 65-80 million vacant units, indicating a long-term decline in housing demand and raising concerns about the nation's economic growth.
China's urbanization drive is slowing down, which is expected to further impact the struggling property sector that has been plagued by debt problems and declining consumer confidence. Managing the excess housing supply and diversifying the economy away from reliance on the property sector are crucial for a healthier Chinese economy.
President Xi Jinping's efforts to tackle the housing crisis in China face obstacles as multiple property developers, including Evergrande and China Oceanwide, deal with debt restructuring, liquidation, and potential defaults, leading to investor confusion about the government's plan to stabilize the market.
China's property crisis, characterized by an excess of empty homes, could take up to a decade to resolve, according to economist Hao Hong, with the country's urbanization process stagnating and the property sector's contribution to GDP declining.
China's economic outlook, particularly for the real estate sector, is expected to become clearer in the last three months of the year, with potential government support and loosening of restrictions to stabilize the housing market and allow the economy to recover fully by mid-2024. However, economists predict that real estate growth will remain weak and prices may fall gradually, as significant price declines could have adverse social consequences.
China's property market blowup, which has led to major developers struggling and low housing sales, may not necessarily result in a financial crisis due to the unique characteristics of China's housing market and Beijing's control over the financial system, but it is expected to cause significant damage to bank balance sheets and potentially lead to widespread financial turbulence if support is not provided to local governments and small lenders.
China's property crisis poses significant challenges for an economy heavily reliant on real estate, although there are some sectors that may benefit from the situation.
China's real estate crisis continues as Country Garden warns investors of a possible default on its $190 billion debt, highlighting the persistent weakness in the property market and posing a major threat to the country's growth prospects.
China's economic growth model, built on real estate speculation and debt, is starting to unravel as the property market collapses and other sectors show strain, leading to shrinking demand, unstable supply chains, and a more precarious global economic landscape.
China's housing crisis, triggered by the default of developer China Evergrande, is deepening, causing doubts about the future of China's economic growth and eroding trust in the government's promises, with economists and international institutions calling for actions to stabilize the situation and shift the country's reliance from real estate to consumer-driven growth.
China's property market is struggling to recover despite government stimulus measures, as economic uncertainty and low buyer confidence continue to dampen demand, with the debt crisis in the sector further impacting the outlook.
China's troubled property market is unlikely to recover in the short term, as economic uncertainty and low buyer confidence continue to hamper demand, despite government stimulus measures; home prices fell for the third consecutive month in September, and property sales and investment have also seen double-digit declines.
