Due to the fact that up to a third of China’s GDP is made up of industries that contribute to the economy, including real estate, this has had a significant negative impact on it (GDP).
People become uncertain about the state of the economy as a whole when there is low confidence in the housing market, according to Mr. Kuijs.
Homebuyers have been refusing to pay their mortgages on partially constructed structures, and some aren’t sure their homes will ever be finished. The decline in demand for new dwellings has decreased the requirement to import building materials.
Home prices have fallen by more than 20% this year in dozens of locations despite Beijing’s efforts to support the real estate industry.
analysts suggest that given the pressure on real estate developers, authorities may have to go far