Home Prices and Economy in China Dented By Ongoing Property Sector Slump

China's property sector slowdown is dragging on economic growth. The sector accounts for a large share of GDP and debt.

Developers started defaulting in 2021 due to deleveraging efforts, leaving many unfinished homes. This has weakened consumer and business confidence.

Property-related lending is a small share of banks' loan books. But risks lurk with local governments and their financing vehicles.

After sticking to tight controls for years, authorities have started easing measures to prop up the market. But consensus on support is lacking.

The sector's heyday is likely over due to demographics and high home ownership. But it will remain important as urbanization continues, experts say.