China's real-estate crisis has dragged down the economy, caused massive layoffs and pushed multibillion-dollar companies to the point of collapse.
Economists think it's about to get worse.
Sales of newly built homes in China fell 6% last year, returning to a level not seen since 2016, according to China's statistics bureau. Secondhand home prices in its four wealthiest cities-Beijing, Shanghai, Guangzhou and Shenzhen declined between 11% and 14% in December from the year before, according to the broby ker Centaline Property.
Developers are starting fewer projects. Homeowners are paying back their mortgages early and borrowing less.
Once-thriving property companies are stuck in protracted negotiations with foreign investors, following defaults on about $125 billion of overseas bonds between 2020 and late 2023, according to figures from S&P Global Ratings.
Chinese developers and local governments are so desperate to attract home buyers that some have resorted to bizarre marketing strategies.
This story is from the January 24, 2024 edition of Mint Mumbai.
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This story is from the January 24, 2024 edition of Mint Mumbai.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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