China’s Real Estate Market is Collapsing 🏗️

Key takeaway

• Since the COVID-19 pandemic, property sales in China have fallen by over 60%, while new construction has declined by 71%

How Evergrande Shook China’s Economy

Evergrande Group, once China’s largest property developer, collapsed under $300B in liabilities after years of aggressive borrowing and overexpansion.

In Jan. 2024, a Hong Kong court ordered its liquidation following failed restructuring talks, marking one of China’s biggest corporate failures. 

Evergrande’s collapse triggered a wave of defaults by more than 50 other developers, and left hundreds of thousands of Chinese homebuyers in turmoil. It’s estimated that Evergrande had pre-sold 600,000 housing units.