Once one of the country’s biggest growth drivers, China’s property market has been in a downward spiral for four years with no signs of abating. Real estate values continue to plummet, households in financial distress are being forced to sell properties, and apartment developers that racked up enormous debt on speculative projects are on the brink of collapse.
There was some optimism that government measures to end the crisis had been working to reinvigorate the market, but in March, government-linked developer China Vanke Co. reported a record 49.5 billion yuan ($6.8 billion) annual loss for 2024, showing just how deep the problems run. Then in August, property giant China Evergrande Group delisted from the Hong Kong stock exchange — making the shares effectively worthless — marking a grim milestone for the nation’s property sector.
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