Estate agents in China struggle as housing market plummets
- New home starts in China fell by almost 30% in early 2025 compared to the previous year.
- Millions of homes remain unsold, with some already paid-for properties not being built.
- The drastic measures taken by estate agents highlight their desperation as the housing market continues to decline.
In recent months, the housing market in China has experienced a significant downturn, characterized by a slump lasting over four years. As of February 2025, the average price of newly constructed homes has seen a 21-month continuous decline, affecting both sales and construction. This decline has resulted in millions of unsold homes across the country, with some residences that have already been paid for remaining unbuilt. The fallout from this market collapse has severely impacted the real estate profession, leaving estate agents struggling to make sales amid plummeting demand. This ongoing crisis is exacerbated by a considerable drop in new home construction, which saw new home starts decrease by almost 30% during the first two months of the year compared to the same period the previous year. The martial impact of these factors has left many homeowners feeling despondent, as their investments sit stagnant and their properties depreciate in value. The decreased activity in the real estate market signals not just a problem for estate agents, but a broader economic issue that could lead to further repercussions in related sectors. Furthermore, various innovative strategies are being implemented by desperate estate agents as they seek creative solutions to lure potential buyers. For instance, unusual payment options have emerged, allowing deposits to be made in unconventional forms, such as bushels of wheat or strings of garlic. These measures indicate the extreme lengths to which agents are willing to go to revive a market that seems to have lost its momentum entirely. Such tactics reflect a broader trend of adapting to economic hardships in various professional sectors as businesses grapple with the implications of a sluggish economy. In conclusion, the real estate market in China is facing unprecedented challenges, underlined by a combination of factors like falling prices, reduced construction, and innovatively desperate tactics from agents. Unless there is a significant change, the current situation poses questions about the future viability of the housing market and the overall economic landscape in China, highlighting the need for widespread reforms and recovery strategies to restore stability in this vital segment of the economy.