China’s Mortgage Boycott: Could the Real Estate Market Crumble? | Business and Economy

From: Counting the costs

Chinese home buyers are refusing to pay mortgages on properties they have bought because developers can’t finish them.

Real estate is one of the biggest drivers of economic growth in China, accounting for a third of the country’s $18 trillion gross domestic product (GDP).

Not only the wider economy depends on it, but also households. Up to 70 percent of their assets are tied up in the sector.

But strict coronavirus restrictions and a debt crisis among developers have slowed the real estate market and halted construction on thousands of projects. Home buyers are now frustrated and refusing to pay mortgages on properties they have bought.

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