Part 4/11:
Property prices have witnessed a significant drop, seeing a 6% decline year-on-year—the sharpest fall in a decade. Concurrently, local governments that relied heavily on land sales for 30% of their revenue are now facing unprecedented financial shortfalls.
This plight has forced the Chinese government to step in with supposed remedies. They attempted bailouts for developers, initiated programs to buy unsold homes, and projected an image of stability. However, pledging $138 billion to stabilize the market is like trying to stop a flood with merely a paper towel, particularly given it's less than 3% of annual home sales. The financial resources simply aren’t available to address the monumental issue.