China new home prices fall at fastest pace in over 9 years

Posted by chromazgympartner@reddit | PrepperIntel | View on Reddit | 12 comments

Price Decline: New home prices in China fell 5.3% year-on-year in August, the largest drop since May 2015. This is the 14th consecutive monthly decrease, with a 0.7% monthly drop.

Developer Issues: Many developers are heavily indebted, causing delays in project completions and contributing to a surplus of unfinished apartments.

Buyer Confidence: Reduced buyer confidence due to concerns about financial stability and incomplete projects is driving down demand for new homes.

Investment and Sales: Property investment fell by 10.2% and home sales dropped 18% from January to August 2024.

Policy Measures: Measures like mortgage rate cuts and reduced home buying costs have partially revived demand in major cities but are insufficient to reverse the overall decline.

Smaller Cities: Smaller cities with high unsold inventory and fewer restrictions face significant challenges.

Future Outlook: Home prices are expected to decline further by 8.5% in 2024 and 3.9% in 2025.

Government Intervention: Speculation suggests the government may need to directly fund delayed residential projects to stabilize the market.

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roasty_mcshitposty@reddit

What happens to the millions of citizens who put their savings into their housing? Are they just sort of fucked?

Acceptable-Tutor5708@reddit

Real estate drives economic growth, because people have to work long hours in order to pay high rents - which is essentially a modern form of slavery.

If governments provided affordable housing, or free housing, then people wouldn't need to work as many hours to be able to live, and survive - but there also wouldn't be as many non-essential products and services available to go around.

Solo_Camping_Girl@reddit

I see this as a good thing, the government is finally realizing that it just can't keep on constantly building stuff to profit off of when people don't want to buy. I'm still hoping for a deflation on a mass scale worldwide. I know that degrowth is a taboo word for capitalists, and I'll be cheering on this population decline until it forces them to rethink their old and unsustainable ways.

Nicotine_Lobster@reddit

Good the chinese billionaires can sell us farmland and forest land and go buy their own shit on salr

Basket_cased@reddit

They flee China with their money and in invest in other countries because they know there is no value/hope/future under the CCP

AntiSonOfBitchamajig@reddit

I remember 2018, when there was talk about the ghost cities. Then the "tofu dregs" , then how 2020 pushed the detonator to the whole thing.

Its correcting, but the government is slowing the issue through regulation.

Stateside, I'm still really curious of our commercial real-estate issues. Then you have the auto loan bubble as well, the rumors on that alone are getting ridiculous.

Bob4Not@reddit

Lots of people look at this through a western lens, but the same consequences don’t apply to their system. No one will lose their home - cheaper housing will in fact decrease homelessness, which is already trending in the right direction.

WebAccomplished9428@reddit

This is meant to be propaganda. It's really easy to tell when Ji Xinping already stated he was going to let the real estate giants go under so housing could be more affordable. The Chinese government has already taken everything in to account and are confident that this will not become a "situation" for regular homeowners