Will China’s Real Estate Crisis Hit The Global Economy?

If China's real estate crisis triggers a market crash or a financial crisis, it could send shockwaves through the stock markets worldwide. I’m worried about my investment of over $600K stocks. Is this a time to consider diversifying my portfolios?

The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.

Houses are for living in, not speculating. Very few countries have not commoditised what should be an essential in life

It is difficult to make exact projections for the housing market as it is still unclear how quickly or to what degree the Federal Reserve will reduce inflation and borrowing costs without having a substantial negative impact on demand from consumers for anything from houses to cars.

In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not strongly reliant on the government. This includes exploring opportunities in stocks, gold, silver, and digital currencies. Despite the challenging economic situation, it remains a favorable time to consider these investments.

I love how people talk about recovery when the crash hasn’t even really started yet.

The bigger problem is consumer spending. There are now tens of millions of middle class Chinese people who are paying a mortgage on an apartment that is not finished, and will probably never be finished, as well as paying rent at the same time. This drastically cuts into what they can spend on other stuff, which keeps the economy low. The chinese real estate market has been a sham for 20 years, and the government looked the other way because it made GDP growth look good. The same collapse is going to happen with their EV markets where they are also scamming the GDP numbers by recycling cars to inflate sales numbers. You buy an EV, get the government subsidy, then immediately strip the battery and other expensive parts and sell them back to the car manufacturer and end up with a profit. The car manufacturer then makes, what is considered a ' new car' with the previous cars battery and sells it as a new car. This works as long as the subsidy is big enough, and there are fields of tens of thousands of new EVs that have had their batteries removed.

The massive money printing is hitting the reality of productivity and finite resources.

Housing speculation is a house of cards, whether in China or America.

What the hell is that halloween background music interfering with the voiceovers and the actual voice? 😅

They don't by the land it's a 70 year lease

Going forward I don't see people being stupid enough to put down deposits on unbuilt property. So many people have been burned. And they're even expected to pay mortgages on these unbuilt properties. It's insanity.

I’m confused. Why are slight dips in the real estate market always labeled as a “crisis”, whereas rising prices for real estate is always viewed as an objectively good thing? If real estate prices just kept going up forever, then you would have fewer and fewer people that can afford a housing. In my mind, it’s inevitable that there was going to be a dip in real estate, especially considering that people where buying homes before they were even build. At some point, the bubble was going to pop.

That’s why the world has been decoupling for the past 3 years so the effect in minimized

Tired of hearing about this. Nothing ever change. Nothing will change!!!

Real estate is no longer a good investment. With collapsing populations, there’s nobody to create demand. Boomer wealth was mainly created by populations’ expansions. Now that trend is reversed. And by 2080, those markets will collapse worldwide.

How is this going to affect market s later?

Tofu dreg apartments. This is what happens when the people are made to buy property before it’s even built. People would’ve kept buying if developers finished the properties they sold

Chinese government worries real estate bubble might busted and cause serious financial crisis, same as Japan in the past 20 year. So they make the bubble busted on purpose by themselves. This was a right decision for the country’s long run development, despite real estate will suffer in short term.

Property values(housing costs) skyrocketed then there was a general consumer crash? 🤔