Housing glut in China leaves 150 million people without homes
Posted on February 12, 2024 |
China is facing challenges after its housing market bubble burst, with slow sales and excess inventory.
It may take more than 5 years for China to sell off the extra homes, leading to fierce competition and price cuts.
By the end of 2023, China had 5 billion square meters of excess housing, enough for 150 million people or 50 million homes.
Despite tighter regulations in 2020, home construction slowed but inventories remained high due to slow sales.
Sales of residential space in 2023 fell by 40% compared to the peak in 2021, totaling 940 million square meters.
China's aging population and fewer first-time buyers also amplified the housing market's challenges.
The housing market slump also affected local economies, with many land auctions failing due to developers' reluctance to buy.
