China's Property Market Crisis: Unfinished Projects and Declining Sales Spark Banking Concerns

The size of unfinished, pre-sold homes in China is approximately 20 times larger than the property developer Country Garden, according to a report by Nomura. Around 20 million units of unconstructed and delayed pre-sold homes are estimated to exist, requiring about 3.2 trillion yuan ($440 billion) to complete. Delays in construction have led to homebuyers becoming increasingly impatient, potentially endangering social stability. Beijing may need to significantly increase policy support to restore confidence in the property sector and the economy. Developers are struggling to deliver on pre-sold homes due to financing difficulties and construction challenges caused by the pandemic.