Chinese home prices are plummeting at an alarming rate, surpassing the decline seen during Japan’s infamous bubble burst. With a lack of transparency, the full extent of the crisis remains uncertain, but indicators suggest it could be ten times worse than the 2008 financial crisis. Residential real estate volumes have dropped by a staggering 46% in just over two years, with sales hitting their lowest levels since the 2008 crisis. This raises concerns about whether China is heading into a recession.
Chinese home prices are dropping faster than in Japan after its own bubble burst. pic.twitter.com/30HM4cMtJy
— Peter Berezin (@PeterBerezinBCA) May 5, 2024
China’s real estate slide continues to accelerate at a faster pace than 2008.
Residential real estate volumes dropped to ~75 million per month square meters in late-2023 from ~140 million per month in 2021.
That’s a massive ~46% decline in volume in just over 2 years.
In 2023,… pic.twitter.com/wuYgcDqa6t
— The Kobeissi Letter (@KobeissiLetter) May 4, 2024