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China property sales could plunge by one-third, analysts say, as crisis deepens
Keywords: Property Sales 30% Fall China 2022,
Property sales are estimated to fall by 28-33% in China, twice as earlier forecast by S&P Global Ratings. This is a steep decline that will affect the Chinese economy so dependent on construction. This week there were reports of property buyers in 100 cities getting together to withhold payments on unfinished apartments. Property developers depend on these payments as they have severe liquidity problems and need cash for operations.
Unintended consequences of China's years of hyper growth- climate change and sharply slowing growth
07/31/2022
China's overdependence on the property sector and foreign investment in offshoring factories from home countries to China had unintended effects. The property sector led growth has led to sudden collapse with local governments finances strained by $900 billion according to WSJ and loss of buyer confidence. The effects on communities in the US and EU of shifting local factories to China is well known having alienated the US and EU public, and permanently damaging friendly relations leading to its reversal and shift back to home countries. Years of unbridled hyper growth has not done well for China with the consequences seen today. At the start of this experiment China embarked on in 1990 China had little experience with market economy. The self interested advice of American investment banks and business and the zeal of local government officials led to hyper growth. The US and EU countries could not cope with the scale of China's hyper growth and shift of factories overseas as they had done with Japan in the sixties and seventies because of the sheer scale and compression in a short period for China. The result is sharply slowing growth in China and loss of faith on both sides. It did not have to happen this way and shows the unintended consequences of letting capitalism go its own way with interested parties acting excessively and governments not acting where prudence is needed. The burning of coal in unlimited quantities created the problems of climate change the world faces today- a double blow for the world and for China with lessons for today and how we think about his in future.
Grouped Articles
China’s Manufacturing Sector Unexpectedly Contracts Amid Weak Demand, Covid Lockdowns
WSJ 07/31/2022
China’s Economy Tested by Strained City Finances
WSJ 07/31/2022
China Home Sales Plunge in July, as Mortgage Revolt Deters Buyers
WSJ 07/31/2022
China property sales could plunge by one-third, analysts say, as crisis deepens
The Guardian 07/26/2022
China Bet It All on Real Estate. Now Its Economy Is Paying the Price.
NYTimes.com 10/16/2023
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