China’s property market loses $18 trillion, surpassing U.S. 2008 crisis losses.

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China’s property market is in freefall, with losses now surpassing a staggering $18 trillion. This catastrophic downturn has obliterated the previous record set by the 2008 U.S. financial crisis, which cost Americans about $12.8 trillion, shaking the very foundation of the global economy.

The scale of China’s property market collapse is unprecedented, sending shockwaves across the world’s second-largest economy and beyond. The $18 trillion loss dwarfs the 2008 U.S. financial crisis, highlighting a massive vulnerability in the global financial system.

BREAKING 🚨: China

The Chinese Property Market has seen a total loss of $18 Trillion over the past 3 years, surpassing the losses suffered by the U.S. during the Global Financial Crisis pic.twitter.com/4O1Vfxwsgv

— Barchart (@Barchart) January 3, 2025

Investor confidence has plummeted, and the economic fallout is visible worldwide. As markets tremble, the consequences for global trade and growth intensify. The collapse, which started in May 2022, has continued to spiral downward. As of November 2024, new home prices have fallen for five straight months, a clear sign of prolonged economic trouble.

With an unsold housing inventory of a staggering $13 trillion and an expected property sales shortfall, China is facing a severe oversupply. Investment in the property sector has plummeted by 9%, compounding the crisis. Non-performing loans and defaults are rising sharply, pushing many developers to the brink of bankruptcy.

The losses have become even more profound with massive debt accumulation among major developers like China Evergrande Group, which owes a mind-boggling $300 billion. As these developers face construction delays and liquidity crises, the effects have rippled out, decimating household wealth and cutting consumer spending.

This crisis is not just China’s problem. It is a global one. With financial instability on the rise, the downturn in property values and investor pullback is igniting a new wave of volatility in financial markets. The ramifications of this crisis go far beyond China’s borders, threatening the stability of the entire global economy.