Part 9/11:
China's real estate market, characterized by astronomical prices and speculative investments, represents a significant portion of its economic output. The interplay of economics and socio-cultural expectations has created unmanageable pressures within the housing sector. Surging prices have compelled families to invest deeply in properties, adding pressure to unsustainable debt levels.
Critics argue that extended lockdowns during the global pandemic exacerbated these tensions, leaving many prospective homeowners without the promised properties due to halted construction. With developers facing liquidity crises, the risk of mass defaults and a collapse in house prices looms large, threatening not just the real estate market but the entirety of China’s economic structure.