đ¨đł Chinaâs Real Estate Meltdown: $18 Trillion Gone đ¨đď¸
Since 2021, Chinaâs housing market has lost a staggering $18 trillion in valueâeclipsing the total U.S. housing losses from the 2008 financial crisis.
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đ What Triggered the Collapse?
Major developers like Evergrande defaulted under unsustainable debt loads.
Buyer confidence plummeted, freezing property sales.
Economic slowdown, policy tightening, and demographic shifts added pressure across the board.
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đ Why This Matters Globally
Real estate drives around 25â30% of Chinaâs GDP, so the crash is dragging down overall growth.
Much of the middle classâs wealth was tied to propertyânow severely reduced, which is hitting spending hard.
Lower demand from China for global goods, resources, and even digital assets may ripple through international markets.
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đŽ Whatâs Likely Ahead?
Beijing could respond with stimulusâdeveloper loans, relaxed mortgage rules, etc.
However, experts caution that real change requires deeper reforms, not just short-term support.
With real estate faltering, capital might flow into sectors like tech or crypto in search of returns.
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đ§ââď¸ Key Takeaway
Chinaâs property bubble has burst, and recovery wonât be fast. The long-term fallout is likely to extend beyond Chinaâwatch how global markets, including crypto, adjust to this massive shift.
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