China's real estate market is still facing difficulties, the rich just want to keep their money.

The property market that has hit Chinese household wealth hardest this year has been the property market. The property crisis has affected the entire Chinese economy , with 70% of household wealth held in real estate.

According to Bloomberg estimates, if housing prices in China fall by 5%, total household assets in the country will "evaporate" 19,000 billion yuan (about 65.5 million billion VND).

Mr. Eric Zhu, an economist at Bloomberg Economics , commented that this may be just the beginning, in the next few years the assets of Chinese households will likely continue to decline.

Unless the market recovers strongly, Chinese consumers' real estate assets are unlikely to increase, the expert said. According to UBS bank, the average net worth of each adult in China fell 2.2% in 2022.

Chinese household wealth is likely to continue to decline over the next few years (Photo: Reit).

Even high-net-worth individuals in China are becoming more cautious, according to a survey by China Merchants Bank and consulting firm Bain & Co. Individuals' financial goals are shifting from "wealth creation" to "wealth protection."

Official Beijing data shows existing home prices have fallen only slightly. However, reports from real estate brokers and private data providers show prices in prime areas in major cities have fallen by at least 15%.

Bloomberg Economics estimates that China’s real estate sector’s share of gross domestic product (GDP) will fall to about 16% by 2026 from about 20% now. This decline will put about 5 million people, or 1% of China’s urban workforce, at risk of unemployment or reduced income.

Source: https://dantri.com.vn/bat-dong-san/bat-dong-san-trung-quoc-van-gap-kho-nha-giau-chi-mong-giu-duoc-tien-20231222213152970.htm