Why China Can’t Sort Out Its Property Market Mess

Once one of the country’s biggest growth drivers, China’s property market has been in a downward spiral for five years with no signs of abating. Real estate values continue to plummet, households in financial distress are being forced to sell properties, and apartment developers that have racked up enormous debt on speculative projects are on the brink of collapse.

There was some optimism that the government’s measures to end the crisis had been working to reinvigorate the market, but in March, government-linked developer Vanke reported a record 49.5 billion yuan ($6.8 billion) annual loss for 2024, showing just how deep the problem runs. Then on Aug. 12, property giant China Evergrande Group announced it would delist from the Hong Kong stock exchange, marking a grim milestone for the nation’s property sector.