China’s 48 Million Unbuilt Homes Threaten to Prolong Crisis
- Figure shows property crisis won’t be resolved soon: BI report
- Buyers more likely to now favor built and second-hand homes
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At least 48 million homes in China have been sold before construction has been completed, suggesting the country’s property crisis won’t be resolved anytime soon, according to a report from Bloomberg Intelligence.
The figure, based on pre-sales data from 2015 through the first half of this year, is bigger than Germany’s total housing stock in 2021. It presents a direct threat to developers’ revenue because people could start avoiding pre-sales of new developments and instead buy completed or second-hand housing, analysts Kristy Hung and Monica Si wrote.