China’s home foreclosures soar as nation’s debt-fuelled property bull run sputters on falling income and dim job prospects

As many as 1.25 million homes were foreclosed in China as of September 16, according to the Taobao e-commerce platform operated by this newspaper’s owner Alibaba Group Holding
That’s more than doubling from 500,000 at the end of 2019 and compared with 9,000 foreclosures in 2017

China’s property foreclosures soared this year, as deteriorating job prospects and shrinking income amid the worst economic contraction in decades combined to weigh down on borrowers’ repayment ability, putting an end to the country’s debt-fuelled real estate rally.

As many as 1.25 million homes were foreclosed in China as of September 16, according to the Taobao e-commerce platform operated by this newspaper’s owner

Alibaba Group Holding

, compared to 300,000 in 2019 and 180,000 foreclosures put on the platform in 2017.

Nowhere is the problem more serious than in Guangzhou, the provincial capital of Guangdong and home of the autonomous driving unicorn Pony.ai and Procter & Gamble’s Greater China head office. As many as 33,000 foreclosures were reported in a city whose economy shrank 2.7 per cent last year, more than the national average of 1.6 per cent.

www.scmp.com/business/china-business/article/3101807/chinas-home-foreclosures-soar-nations-debt-fuelled-property

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