Chinese language media, Da Ji Yuan cited Chinese media on September 6th, reporting that in the first half of this year, the amount of money loaned out to buy houses by six big national banks in China was only a third of the same period last year, marking a record low.
Meanwhile, the situation of medium-sized banks is even worse. These banks’ home loans have decreased to only about one-eighth compared to the same period last year.
A real estate agent in China told Da Ji Yuan that there are not many homebuyers left, so recently, real estate companies have been laying off employees.
The agent blames the Zero-Covid policy. He believes that the lockdown has dramatically affected the development of the real estate industry.
He said major cities, like Shanghai, had a high rate of housing inventory after the lockdown, and real estate agents were looking to flee.
Commentator Wang He told Da Ji Yuan that the real estate bubble in China has burst, and the Chinese fairy tale of real estate speculation to get rich has ended.
Wang said that the real estate market in China has shrunk to about half of what it was last year.
However, the leadership of the Chinese Communist Party does not acknowledge this fact. Instead, they are still trying to support real estate in the hope of revitalizing the economy.