China real estate crisis: Authorities to rescue property developers after homebuyers boycott mortgages
2 years, 7 months ago

China real estate crisis: Authorities to rescue property developers after homebuyers boycott mortgages

India TV News  

Highlights Authorities are promising as an initial rescue fund of $11.8B to offset crisis in real estate sector Home buyers announced they would stop mortgage payments until work resumed on unfinished projects Experts say the boycott is a byproduct of two decades of insufficient oversight China real estate crisis: Chinese authorities are promising to establish an initial rescue fund of $11.8 billion to offset a looming crisis in the real estate sector, where home buyers routinely purchase residences from developers' plans and begin making mortgage payments before the dwellings are finished, media reports said. That was followed by the tightening policies in August 2020, when the central government realized real estate developers' debt was getting out of control, and draconian lockdowns stalled work on residential projects. Amid all this, many home buyers announced they would stop making mortgage payments to banks until work resumed on unfinished projects, VOA reported. Experts say the boycott is a byproduct of two decades of insufficient oversight over a red-hot real estate sector.

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History of this topic

Localities given more powers to stabilize realty
3 weeks, 1 day ago

Localities given more powers to stabilize realty

China Daily  

Potential homebuyers look at a property model in Taiyuan, Shanxi province. "A mortgage rate cut could be a critical component of the government's broader strategy to arrest the ongoing downturn in the real estate market and guide it toward a sustainable recovery," said Wang Qing, chief macroeconomic analyst at Golden Credit Rating International. The current substantial land inventory and the …

China’s ¥5.6 Trillion Real Estate Support Has Yet to Deliver. Here’s Why.
3 weeks, 5 days ago

China’s ¥5.6 Trillion Real Estate Support Has Yet to Deliver. Here’s Why.

The Diplomat  

For much of the past decade, China’s real estate sector has been a key driver of economic growth, contributing roughly a quarter of the country’s GDP. The slowdown has disrupted employment, dampened consumer confidence, and strained local government revenues, turning what was once China’s economic engine into a source of prolonged financial distress. Launched in January 2024, the program encourages …

China Residential Property Sales Rebound as Stimulus Boosts Buyer Morale
4 months, 3 weeks ago

China Residential Property Sales Rebound as Stimulus Boosts Buyer Morale

Live Mint  

China's residential property sales rose in October, marking the first on-year increase since 2024. The value of new-home sales increased by 7.1%, reversing a 37.7% slump in September. The improvement was driven by stimulus measures that eased borrowing costs and relaxed buying restrictions in major cities. However, analysts remain concerned about the sector's decline and the need for further policy …

China unveils 'historic' steps to stabilise crisis-hit real estate sector
10 months, 1 week ago

China unveils 'historic' steps to stabilise crisis-hit real estate sector

Hindustan Times  

China on Friday announced "historic" steps to stabilise the crisis-hit property sector, allowing local governments to buy "some" apartments, relaxing mortgage rules and pledging to deliver unfinished homes. China Real Estate Newspaper, a publication managed by the housing ministry, said the "heavyweight policies" marked "a significant historic moment" for the property sector. After waves of support measures over the past …

China rolls out new measures to fix its property crisis, spur growth
10 months, 1 week ago

China rolls out new measures to fix its property crisis, spur growth

Associated Press  

China announced a slate of fresh measures Friday to reinvigorate its ailing property industry after the latest data showed housing prices have slumped nearly 10% since the start of the year. He Lifeng, a vice premier, said officials would roll out policies to suit each city and “fight the tough battle of dealing with the risk of unfinished commercial housing.” …

Desperate Chinese property developers resort to bizarre marketing tactics
1 year, 2 months ago

Desperate Chinese property developers resort to bizarre marketing tactics

Live Mint  

China’s real-estate crisis has dragged down the economy, caused massive layoffs and pushed multibillion-dollar companies to the point of collapse. A property company in Tianjin ran a video A residential compound in eastern China’s Zhejiang province promised last year to give home buyers a 10-gram gold bar. Earlier this month, Sheng Songcheng, former head of the statistics department at the …

Can China fix its property crisis?
2 years, 2 months ago

Can China fix its property crisis?

Live Mint  

To judge by the high-rises dotted along the shore in Haiyang, a small coastal city, Country Garden’s prospects are pretty meagre. The volume of floor space sold across the country fell by 24% in 2022, the biggest slump since data became available in 1992; property investment was down 10% year on year, the first drop on record. This is a …

Explained | How bad is China’s property crisis and how did it get here?
2 years, 6 months ago

Explained | How bad is China’s property crisis and how did it get here?

The Hindu  

The story so far: China, the world’s second-largest economy, is facing a crisis in its once-booming property sector. Meanwhile, July data from China’s National Bureau of Statistics showed that property investment fell in the country by over 12 per cent year-on-year, the steepest fall this year, per a Reuters report. Read also: China property crisis is spiralling with homebuyers’ boycott …

Explained: How will China’s property crisis impact its economy?
2 years, 7 months ago

Explained: How will China’s property crisis impact its economy?

Firstpost  

The recent spate of mortgage strikes by homebuyers across China has exposed the risk that has accumulated in the market as it has developed over the past two decades China has been trimming interest rates recently – in contrast to other major economies – as it tries to stem the economic effects of its zero-Covid policy and address a growing …

The Chinese dream of homeownership is crumbling. The economy could go with it
2 years, 7 months ago

The Chinese dream of homeownership is crumbling. The economy could go with it

LA Times  

Last November, hundreds of angry homeowners in Nanchang, the capital of China’s Jiangxi province, gathered on the roof of an unfinished apartment building. And in China, unfortunately, the property sector is huge.” An exacerbated slowdown in China, a major commodities consumer and the world’s second-largest economy, would also have pronounced impact on the global financial system in its fragile state. …

China's mortgage boycott is escalating. Now Evergrande suppliers have stopped paying bank loans
2 years, 8 months ago

China's mortgage boycott is escalating. Now Evergrande suppliers have stopped paying bank loans

ABC  

A fast-growing mortgage boycott across dozens of cities in China has prompted some property suppliers to cease their bank loan repayments, raising fears the escalating situation could trigger a further downward spiral in the sector and even threaten the country's financial stability. Key points: Some suppliers to defaulting developers, such as Evergrande, are refusing to make loan repayments It comes …

China's next big worry: A mortgage crisis knocking on its doors
2 years, 8 months ago

China's next big worry: A mortgage crisis knocking on its doors

India Today  

China's property sector is causing worry in economic circles as homebuyers of around 100 projects across 50 cities have decided to stop paying mortgages for unfinished homes after prolonged construction suspension. In China, where property has been a key driver of growth for years, ever-rising home prices, surging household debt, and the real estate sector broadly contribute to around one-third …

China’s slowing economy in spotlight as legislature meets
3 years ago

China’s slowing economy in spotlight as legislature meets

Associated Press  

BEIJING — China’s ruling Communist Party is temporarily turning away from its longer-term ambitions to focus on pulling the economy out of a slump as the country heads into the annual meeting of its ceremonial legislature. The National People’s Congress, usually used to showcase big initiatives, is overshadowed this year by a “policy pivot” begun in December by President Xi …

Evergrande can’t pay its debts. China is scrambling to contain the fallout
3 years, 3 months ago

Evergrande can’t pay its debts. China is scrambling to contain the fallout

CNN  

Hong Kong CNN Business — Evergrande has defaulted on its debt. “China’s leadership is attempting to play it cool, but the circumstances surrounding Evergrande’s downward spiral raises serious questions about Xi Jinping’s stewardship over China’s rapidly cooling economy,” said Craig Singleton, an adjunct fellow in the China Program at the Foundation for Defense of Democracies, a research institute based in …

China pumps $188 billion into the economy to counter real estate slump
3 years, 3 months ago

China pumps $188 billion into the economy to counter real estate slump

CNN  

Hong Kong CNN Business — China has decided it’s time to loosen its purse strings and pump money into the economy in a bid to stave off threats to the recovery. The decision — the second cut to that ratio this year — came on the same day China’s Politburo signaled that it may take more aggressive actions to protect …

For China, reining in real estate is a high-stakes balancing act
3 years, 3 months ago

For China, reining in real estate is a high-stakes balancing act

Al Jazeera  

Authorities are loosening lending and home approvals even as Beijing pushes to reduce economy’s reliance on property. “Beijing wants to ensure that there’s sufficient liquidity to maintain construction in the property sector,” Janz Chiang, an analyst at Trivium China in Beijing, told Al Jazeera. “While they are most likely to continue with their policy trajectory to cool the property market, …

Evergrande crisis: US Fed warns China’s property problems could hurt global markets and the US economy
3 years, 4 months ago

Evergrande crisis: US Fed warns China’s property problems could hurt global markets and the US economy

CNN  

Hong Kong CNN Business — Troubles in China’s vast real estate sector could spill over to the global economy — including the United States, according to the Federal Reserve. The US central bank warned Monday that China’s ongoing property woes could elevate “financial stresses in China, could further strain global financial markets and negatively affect the United States.” In its …

Chinese economy slows as government reconfigures growth formula to control debt
3 years, 4 months ago

Chinese economy slows as government reconfigures growth formula to control debt

Firstpost  

For China, the Bank of America cut its full-year forecast from 8 percent to 7.7 percent, and slashed next year’s outlook from 5.3 percent to just 4 percent Beijing: China’s economic rebound from the coronavirus pandemic is stalling as President Xi Jinping’s government cracks down on surging corporate debt. Beijing “doesn’t want growth at all costs, followed by the likely …

China's economy slows as Beijing wrestles with debt
3 years, 4 months ago

China's economy slows as Beijing wrestles with debt

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Beijing “doesn’t want growth at …

China’s real estate crisis: Evergrande and these developers are already in trouble
3 years, 5 months ago

China’s real estate crisis: Evergrande and these developers are already in trouble

CNN  

CNN Business — China’s real estate crisis isn’t showing any sign of letting up. They could Earlier this month, the People’s Bank of China said that Evergrande had mismanaged its business, but risks to the financial system were “controllable.” And at financial forum in Beijing last week, Chinese Vice Premier Liu He stressed that risks were generally under control, despite …

China’s real estate crisis: Evergrande and these developers are already in trouble
3 years, 5 months ago

China’s real estate crisis: Evergrande and these developers are already in trouble

CNN  

CNN Business — China’s real estate crisis isn’t showing any sign of letting up. They could Earlier this month, the People’s Bank of China said that Evergrande had mismanaged its business, but risks to the financial system were “controllable.” And at financial forum in Beijing last week, Chinese Vice Premier Liu He stressed that risks were generally under control, despite …

Fear of China’s Evergrande Contagion Spreading to Global Commodity Markets Looms Large
3 years, 5 months ago

Fear of China’s Evergrande Contagion Spreading to Global Commodity Markets Looms Large

News 18  

Buried under a huge $305 billion debt and almost on the brink of collapse, China’s real estate giant Evergrande Group defaulted twice on payments to offshore bondholders in September 2021. With large offshore investments in Chinese high-yield real estate bonds, financial markets in other countries now are exposed to substantial risk of contagion. The empire of Evergrande Group spans over …

Evergrande crisis shines a light on China’s millions of empty homes
3 years, 5 months ago

Evergrande crisis shines a light on China’s millions of empty homes

CNN  

Evergrande’s unraveling is still commanding global attention, but its troubles are part of a much bigger problem. The People’s Bank of China said the company had mismanaged its business but risks to the financial system were “controllable.” “In recent years, the company has failed to manage its business well and to operate in accordance with market changes,” Zou Lan, director …

In its latest crackdown, China intensifies focus on real estate
3 years, 8 months ago

In its latest crackdown, China intensifies focus on real estate

Al Jazeera  

After a years-long campaign to tame property prices, China is upping the ante to break a stubborn cycle of gains that’s made homes increasingly unaffordable. Echoing Xi Jinping’s famous words that “housing is for living in and not for speculation,” Vice Premier Han Zheng added that the sector shouldn’t be used as a short-term tool to stimulate the economy. “China’s …

Real estate may be a safer bet than equities
5 years, 7 months ago

Real estate may be a safer bet than equities

Live Mint  

When you meet a financial planner, one advice that you are most likely to receive is to stay away from real estate and instead invest in financial assets, which are likely to fetch you better returns over the long run. The study builds on a new database of asset prices — Jordà-Schularick-Taylor Macrohistory Database funded by the Institute for New …

Home comfort for new buyers[1]- Chinadaily.com.cn
7 years, 4 months ago

Home comfort for new buyers[1]- Chinadaily.com.cn

China Daily  

Policies targeting illicit finance for property down payments will provide greater security against risks While buying a home is widely seen as a sign of providing yourself with a stable and sound living environment, the government is issuing new policies that prohibit home buyers from potential risks. China will ban property developers, real estate agencies, as well as internet finance …

Home comfort for new buyers[1]- Chinadaily.com.cn
7 years, 4 months ago

Home comfort for new buyers[1]- Chinadaily.com.cn

China Daily  

Policies targeting illicit finance for property down payments will provide greater security against risks While buying a home is widely seen as a sign of providing yourself with a stable and sound living environment, the government is issuing new policies that prohibit home buyers from potential risks. China will ban property developers, real estate agencies, as well as internet finance …

China scales up regulation of real estate developers, agents
7 years, 11 months ago

China scales up regulation of real estate developers, agents

China Daily  

BEIJING - China's housing regulator urged efforts to crack down on malpractice by real estate agents and developers on Wednesday amid a fresh round of measures to cool the property market. Local authorities were required to act strongly against monopolistic practices and market manipulation, creating misleading expectations through rumor mongering, and providing false certificates, according to a statement from the …

China to strengthen property market supervision
8 years, 2 months ago

China to strengthen property market supervision

China Daily  

A visitor examines a property project model at a real estate expo in Beijing. BEIJING -- China will strengthen housing market supervision to ensure healthy development of the sector, an official statement has said.The Ministry of Housing and Urban-Rural Development reported violations of 21 real estate developers, which in hopes of boosting sales, spread rumors, published false information, operated without …

China vows to curb real estate bubble in 2017
8 years, 3 months ago

China vows to curb real estate bubble in 2017

China Daily  

BEIJING -- China will promote the stable and healthy development of the real estate market in 2017, said a statement issued Friday after the Central Economic Work Conference. The country will establish a market-oriented and long-term mechanism that can curb a real estate bubble and prevent erratic fluctuations, the statement said. Policymakers have set the tone for the real estate …

Rumors expose problems in property market
8 years, 6 months ago

Rumors expose problems in property market

China Daily  

A divorce registration office of the Shanghai Civil Affairs Bureau is bombarded by couples on Aug 30. SHANGHAI POLICE HAVE detained seven real estate agents for spreading rumors about the government introducing new home purchase restrictions, which led to a jump in divorce rates and a property buying frenzy in the city. Beijing News commented on Monday: The seven Shanghai …

The unexpected casualty of China's housing boom
8 years, 6 months ago

The unexpected casualty of China's housing boom

China Daily  

Chinese homebuyers look at housing models of a residential property project during a real estate fair in Shanghai, China, May 2, 2015. So, does the sudden surge in the number of couples in Shanghai seeking divorce early this week mean China's super housing boom has finally come to a tragic end? As a result of rapidly increasing home prices in …

Real estate investors buck barriers[1]- Chinadaily.com.cn
8 years, 9 months ago

Real estate investors buck barriers[1]- Chinadaily.com.cn

China Daily  

When international deals go bad, you can't always blame the language barrier. Transactions of Chinese real estate investment in the US more often fail because of a difference in culture and expectations than because of a difference in language, experts said. Real estate may be the most highly regulated and taxed asset class in the US and is considerably more …

No fear of subprime crisis but caution is still the catchword
9 years ago

No fear of subprime crisis but caution is still the catchword

China Daily  

A property construction site in Nanjing, capital of Jiangsu province. Both industrial production and retail sales increased at a slower rate in the first two months compared with December 2015, which means policymakers still face huge pressure to reduce overcapacity and stabilize growth. Such strong growth in investment may offer some relief to policymakers, but some undesirable abnormalities have emerged …

PBOC says crackdown on illegal realty funding to intensify
9 years ago

PBOC says crackdown on illegal realty funding to intensify

China Daily  

PBOC says crackdown on illegal realty funding to intensify By Xin Zhiming Updated: 2016-03-12 11:36:48 Pan Gongsheng, China's central bank vice governor and head of China's State Administration of Foreign Exchange at a press conference on the financial reform and development on the sidelines of the fourth session of the 12th National People's Congress in Beijing, capital of China, March …

Chinese investors confront weak property markets
9 years, 7 months ago

Chinese investors confront weak property markets

ABC  

An era of explosive growth in property development has left a massive glut of commercial and residential buildings, pushing prices down. "If you had a flat in a good location, people would ask you to sell your apartment to them so that they could resell the property," the young agent reminisced. Stock market refugees flee back to real estate Many …

Homebuyers trade up with a careful eye on value
9 years, 11 months ago

Homebuyers trade up with a careful eye on value

China Daily  

A man inspects a property model display on June 14, 2014 in Rizhao, Shandong province. Instead, homebuyers, policy-makers and real estate developers seem to be locked in a little mind game as they try to figure out each other's bargaining power. It is true that many residents have outgrown their first flats and they fear housing prices may continue to …

Homebuyers trade up with a careful eye on value
9 years, 11 months ago

Homebuyers trade up with a careful eye on value

China Daily  

A man inspects a property model display on June 14, 2014 in Rizhao, Shandong province. Instead, homebuyers, policy-makers and real estate developers seem to be locked in a little mind game as they try to figure out each other's bargaining power. It is true that many residents have outgrown their first flats and they fear housing prices may continue to …

China's rich look abroad as home prices fall, others stay put[1]- Chinadaily.com.cn
10 years, 8 months ago

China's rich look abroad as home prices fall, others stay put[1]- Chinadaily.com.cn

China Daily  

Apartment buildings are seen in a residential area at Pudong district in Shanghai August 2, 2013. Rattled by falling home prices, some of the wealthiest Chinese are paring their property investments and turning to private equity or overseas holiday homes, a sign of fading hopes that the once red-hot market can bounce back any time soon. "Smart money" checking the …

Property shocks prompt investors to spread wings[1]- Chinadaily.com.cn
10 years, 9 months ago

Property shocks prompt investors to spread wings[1]- Chinadaily.com.cn

China Daily  

A Chinese migrant worker builds scaffoldings at the construction site of a real estate project in Rizhao city, east Chinas Shandong province, May 1, 2014. "Given the rising uncertainties in China's real estate market, it is really difficult for international investors to find a project that can bring them appropriate gains with controllable risks," said Ji. James Raynor, chief executive …

China to unveil long-term property market plan
11 years, 7 months ago

China to unveil long-term property market plan

China Daily  

SANYA -- China is expected to unveil a plan for a long-term mechanism to nurture the healthy development of the real estate market in the next three months, a senior industry official said Wednesday. The plan outlining measures on urbanization development and a long-term development mechanism concerning the property sector is in the board room and can be expected soon, …

Measures to target property firms
18 years, 4 months ago

Measures to target property firms

China Daily  

By Guan Xiaofeng Updated: 2006-11-16 07:03 The central government's next steps to cool the nation's overheated property market will be targeted at real estate enterprises, according to local media. Zhu Zhongyi, chairman of China Real Estate Association, said supervision of real estate enterprises has always been part of the nation's efforts to regulate the industry. "Real estate enterprises in Beijing …

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