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Shocking forecast for Chinese real estate, expected to inject $ 44 billion to rescue
Meanwhile, S&P Global Ratings has just made a shocking forecast about the Chinese real estate market. According to this forecast, China's real estate sales are expected to fall more than during the 2008 financial crisis.
Nationwide property sales in China could drop by as much as 30% this year, nearly twice as low as previously forecast, the queue organization said. This is because more and more homebuyers in China are suspending their loan payments to buy a home.
Esther Liu, director of S&P Global Ratings, said such a drop would be worse than in 2008, when sales were down about 20%.
Since the end of June, unofficial figures show a rapid rise in Chinese homebuyers refusing to pay off home loans in hundreds of projects until developers complete them into construction.
Most homes in China are sold prior to completion, creating an important source of money for developers. However, real estate businesses have been struggling to get money in the past two years.
The fact that customers stopped paying home loans hurt market confidence, delaying the recovery of China's real estate sector into 2023, not just this year, Mr. Liu said.
Source: vietnamnet.vn
