{"id":356009,"date":"2023-05-29T12:40:21","date_gmt":"2023-05-29T16:40:21","guid":{"rendered":"https:\/\/www.sgtreport.com\/?p=356009"},"modified":"2023-05-29T01:45:49","modified_gmt":"2023-05-29T05:45:49","slug":"home-sales-in-china-plummet-drastically-putting-worlds-largest-real-estate-market-on-the-brink-of-collapse","status":"publish","type":"post","link":"https:\/\/www.sgtreport.com\/2023\/05\/home-sales-in-china-plummet-drastically-putting-worlds-largest-real-estate-market-on-the-brink-of-collapse\/","title":{"rendered":"Home sales in China PLUMMET drastically, putting world\u2019s largest real estate market on the brink of COLLAPSE"},"content":{"rendered":"

by Arsenio Toledo, Natural News<\/a>:<\/em><\/p>\n

\"\"<\/p>\n

The real estate market of China, the largest in the world,\u00a0is on the brink of collapse<\/a>\u00a0as enthusiasm from Chinese home buyers\u00a0plummets drastically<\/a>.<\/p>\n

China\u2019s real estate market was already in a state of decline in early 2023, but it experienced a short-lived rebound as the Chinese Communist Party ordered local government units to issue policies bailing out real estate companies. By the end of April, the mortgage rate for first-time home buyers in more than 40 major cities had dropped to below four percent, thanks to government intervention. However, this optimistic outlook failed to live up to analysts\u2019 expectations by April. (Related:\u00a0Home prices DECLINE in 31% of the US, mostly in Democrat-controlled cities where crime and high taxation are rampant<\/a>.)<\/p>\n

TRUTH LIVES on at\u00a0https:\/\/sgtreport.tv\/<\/a><\/p>\n

According to a financial statistics report for April released by China\u2019s central bank, mortgages decreased by 241.1 billion yuan ($34.1 billion) that month. Among those, medium- and long-term household loans decreased by 115.6 billion yuan ($16.3 billion,) while short-term mortgages decreased by 125.5 billion yuan ($17.7 billion).<\/p>\n

Public statistics show that many major Chinese cities reported double-digit declines in the sales of previously-owned homes. The worst decline was Hefei\u2019s 40 percent, followed by Beijing\u2019s 37.3 percent, Hangzhou\u2019s 32.7 percent, Shanghai\u2019s 26.71 percent and Nanjing\u2019s 13 percent.<\/p>\n

Chinese real estate market will have to rely on more government intervention to stay afloat<\/h2>\n

Economists warned that the only way for the Chinese real estate market to stay afloat is for the communist government in Beijing to continue intervening. This means continuing the introduction of support measures and the relaxation of rules for first-time home buyers. China\u2019s main housing and financial regulator, the\u00a0China Banking and Insurance Regulatory Commission<\/em>, has already ordered local real estate brokers to reduce fees for housing transactions and leasing services to stimulate activity and development.<\/p>\n

However, what the Chinese Communist Party (CCP) seems to be doing is focusing too much on price controls, so much so that it has tightened its grip even further on the real estate market and is actively preventing buyers from deviating too high or too low on the prescribed prices for new homes.<\/p>\n

When two real estate developers in Kunshan attempted to cut prices by a large margin to allow more home buyers to afford homes, Chinese regulators penalized them for cutting their prices too much. These regulators claim the developers \u201cdisrupted the normal order of the real estate market and caused social instability.\u201d<\/p>\n

\u201cThe reason why the communist regime won\u2019t let real estate developers lower prices is very simple,\u201d wrote Qu Kai, a Japan-based commentator on Chinese current affairs. \u201cThe chain reaction caused by price cuts will instantly\u00a0burst the bubble<\/a>\u00a0of China\u2019s property market, causing a series of economic crises that would be difficult for the CCP to manage.\u201d<\/p>\n

As the Chinese government continues to intervene in the market in an anti-competitive way, experts warned this current crisis will sooner or later affect banks \u2013 and once the financial sector is affected, the entire Chinese economy could be in crisis.<\/p>\n

\u201cThe consequences of real estate declines and residential mortgage defaults will eventually be passed on to banks,\u201d warned financial expert Fang Qi. This will \u201cfurther plunge [banks and real estate] into chaos, thus causing a vicious cycle.\u201d<\/p>\n

Even if the CCP were to intervene in a moderated way that economists say could be beneficial to the real estate market, analysts warn the effect of these supposedly positive stimulus programs would only be measured. \u201cWe see limited scope for big housing policy stimulus given that mortgage rates and down-payment ratios in many cities are already at record low or multi-year low levels,\u201d wrote analysts at Barclays in a research note.<\/p>\n

Learn more about the collapse of the housing market at\u00a0HousingBomb.news<\/a>.<\/p>\n

Watch this video from ITM Trading, Inc. as Lynette Zang, the company\u2019s chief market analyst, discusses why experts think the commercial real estate sector\u00a0is the next industry to collapse<\/a>.<\/p>\n

Read More @ NaturalNews.com<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

by Arsenio Toledo, Natural News: The real estate market of China, the largest in the world,\u00a0is on the brink of collapse\u00a0as enthusiasm from Chinese home buyers\u00a0plummets drastically. China\u2019s real estate market was already in a state of decline in early 2023, but it experienced a short-lived rebound as the Chinese Communist Party ordered local government […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[153897,153905,153896,153899,126466],"tags":[155766,155767],"_links":{"self":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/posts\/356009"}],"collection":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/comments?post=356009"}],"version-history":[{"count":1,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/posts\/356009\/revisions"}],"predecessor-version":[{"id":356010,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/posts\/356009\/revisions\/356010"}],"wp:attachment":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/media?parent=356009"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/categories?post=356009"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/tags?post=356009"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}