EconomyJan 28, 2024
China's Property Slump Expected to Drag on Through 2024
What We're Showing
Two metrics related to China's "real estate crisis". The first looks at apartment and commercial property sales and the second is housing starts. Both metrics have seen multi-year declines and coupled with China's stock market woes, spells trouble for the nation's economy.
Things to Know About the Property Slump
- Falling Sales: China's new home sales dropped 6% in 2023, with secondhand home prices declining in major cities
- Developer Defaults: Real estate firms faced $125 billion in bond defaults between 2020 and 2023
- Economic Impact: The property sector's slump has dragged down China's economy, leading to layoffs and financial instability
- Getting Creative: Municipalities, many of which rely on land sales as a key source of income, have been introducing “old-for-new” support measures meant to stimulate new home purchases
Uncertain Future
Experts predict a prolonged downturn, with many people in the country souring on real estate as an investment.
Dataset
Newly started residential buildings (millions sq meters) | |
---|---|
2002 | 276.5 |
2003 | 352.4 |
2004 | 390.0 |
2005 | 446.5 |
2006 | 531.8 |
2007 | 662.3 |
2008 | 695.4 |
2009 | 784.9 |
2010 | 1147.2 |
2011 | 1349.4 |
2012 | 1199.1 |
2013 | 1318.5 |
2014 | 1146.4 |
2015 | 970.8 |
2016 | 1047.8 |
2017 | 1160.9 |
2018 | 1385.4 |
2019 | 1514.5 |
2020 | 1473.4 |
2021 | 1350.2 |
2022 | 817.3 |
2023 | 637.4 |
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