Chi on China

China’s housing market has entered a structural downtrend, as the population ages and per capita housing space approaches the developed market average. However, the pace of the market contraction since late 2021 has been particularly swift. Beijing’s policy to deleverage the property sector has led to a liquidity squeeze and a loss of homebuyers’ confidence in the ability of the developers’ to deliver pre-sold homes. These factors have aggravated the structural pressures on the property market.