Saturday, 24 September 2022

[Post 176] China Millennials’ Mortgage Boycott: Why The Property Crisis Should Worry You | CNA


Summary

In 2022, Chinese millennial homebuyers took to the streets and social media to wage a boycott on mortgage payments, as their homes stood unfinished with financially-distressed developers unable to complete them.

Real estate and its related industries make up a hefty one-third of China’s economy. So, as #CNAInsight’s Wei Du explains, any property crisis would ripple out into the world - with reduced imports of steel and timber from countries like Australia and Indonesia, for instance. 

At the same time, the government’s moves to temper property prices have led to a decline in home values. It could mean that affluent citizens feeling the pinch would pull back on luxury spending and travel - a blow for countries counting on Chinese tourism.

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