China’s property market has lost over $18 trillion in value since 2021 — more than the total damage caused by the 2008 financial crisis in the U.S. This isn’t just a local issue anymore. It’s a clear sign that the world’s second-largest economy is hitting serious turbulence, and the impact won’t stay within China’s borders.
The crash started with heavily indebted developers like Evergrande defaulting. That triggered a domino effect: homebuyer confidence evaporated, property sales collapsed, and government crackdowns only deepened the damage. Now, one of the most important sectors of China’s economy is in freefall, and there’s no easy fix in sight.
Real estate makes up about 25–30% of China’s GDP, and it's where most of the Chinese middle class has parked their wealth. With property values plunging, household spending is tightening up and investment activity is slowing down. That kind of drag on China’s economy can’t help but spill over into global markets — from reduced demand for raw materials to a more cautious financial climate around the world, including in crypto.
Even though Beijing is likely to introduce stimulus measures, experts know this isn’t something a quick policy change can fix. Structural issues like overbuilding, excessive debt, and collapsing confidence aren’t going away overnight. Investors have already started looking for safer or more profitable alternatives — and crypto, tech stocks, and international assets are all back on the radar as a result.
The bottom line is: the Chinese property bubble has burst. A slow and painful recovery seems more likely than any kind of quick rebound, and global markets — especially those with exposure to risk and volatility — are already re
acting.