According to Sound of Hope, China’s real estate market continues in a severe recession.

Real estate developers fail to deliver houses on time, and many customers default on their mortgages. The customers’ decision not only results in the developer not having the capital to complete the project but also makes the bank face the risk of bad debt.

Sound of Hope said that there are tens of thousands of unfinished housing projects in China.

According to HK. finance, Think tank Keerui said that Henan province is the “king of unfinished projects” in China. As of the end of last year, there were 699 unfinished projects in Henan. The rate of unfinished houses in Henan’s capital Zhengzhou reaches 28%.

In the first half of 2022, the volume of transactions in China’s real estate market fell by more than 50% year on year. From January to May this year, commercial and residential sales in China fell by 23.6% year-on-year, and sales fell by 34.5%.

According to VOA’s report on July 13, Xie Tian, a professor at the University of South Carolina, said that the main source of revenue for the Chinese government is from land, but now that revenue has dropped 50%.

Xie Tian said that China is now facing three major crises simultaneously: a declining manufacturing industry, a troubled financial sector, and a shrinking real estate sector.

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