China's Real Estate Crisis: A Deep Dive into the Data

Rising Mortgage Defaults

One of the most concerning indicators of China's real estate crisis is the surge in mortgage defaults. Data from the People's Bank of China shows that the number of mortgage loans that were either overdue or had been written off increased by 20% in the first half of 2022 compared to the same period last year.

Falling Home Sales

Another sign of the crisis is the dramatic decline in home sales. Sales of new homes in China have fallen by over 30% in the past year, according to data from the National Bureau of Statistics. This is the largest decline in home sales in over a decade.

Declining Property Prices

In addition to falling sales, home prices in China have also started to decline. In some major cities, prices have fallen by over 10% in the past year. This is a significant reversal from the years of rapid price growth that China has experienced in the past.

Conclusion

The data presented in this article paints a clear picture of a real estate crisis unfolding in China. Rising mortgage defaults, falling home sales, and declining property prices are all signs that the real estate market is in trouble. This crisis could have a significant impact on China's economy, as the real estate sector accounts for roughly one-quarter of its GDP. It is a situation that will be closely watched by economists and investors around the world.