1. China's real estate market expected to decline 8% in 2025. 2. Sales projected between 8.8 trillion to 9 trillion yuan ($1.23-$1.26 trillion). 3. Government support remains critical as homebuyer confidence falters. 4. Current market slump may lead to a healthier, smaller sector. 5. Top developers' sales increased 0.4%, signaling slight market resilience.
Weaker demand and declining sales could negatively affect global market sentiment. Historical context shows tough impacts following similar downturns, notably in 2015 when China faced economic slowdowns resulting in global market volatility.
China's economic health impacts global markets, notably S&P 500 due to interconnected supply chains and investor sentiment. The ongoing real estate struggles might reduce demand for U.S. exports and affect investor keen interest in risk assets.
Extended struggles in China's real estate market might lead to prolonged economic deterioration. Previous examples, such as the Japanese asset price bubble collapse in the 1990s, resulted in decades of sluggish growth.