According to Goldman Sachs, China's property crisis continues to deepen, with home prices having fallen 20% since the onset in 2021 and expected to drop a further 10% by 2027. This ongoing crisis follows stricter lending regulations intended to control financial risks associated with massive borrowing in the real estate sector. As the world's second-largest economy, China also grapples with high youth unemployment and deflation, compounding the negative sentiment surrounding consumer spending and economic stability.
The unfolding housing market correction in China represents one of the decade's most significant economic events.
Given the durability of housing stock and stickiness of house prices, it may take years for housing busts to finally find a bottom.
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