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Updated January 24th, 2024 at 11:28 IST

China's residential foreclosures rise 43% in 2023

A total of 99,000 units worth a combined 150 billion yuan ($20.84 billion) were successfully sold at auctions, the firm said.

Business Desk
Real estate
Real estate | Image:Pexels
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China’s residential market: The number of foreclosed homes in China rose 43 per cent annually in 2023, according to a private survey on Monday, highlighting a negative trend of rising mortgage delinquencies amid an already sustained property market slump.

The number of foreclosed homes up for auction stood at 3,89,000 units in 2023, said China Index Academy, an independent real estate research firm.

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A total of 99,000 units worth a combined 150 billion yuan ($20.84 billion) were successfully sold at auctions, the firm said.

The overall foreclosures, including commercial, residential and industrial properties, land, garages and parking spaces, totalled 796,000 units, setting a record high in recovering loans through sales of property. The number was up 36.7 per cent from 2022, showed the survey.

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Image credit: Unsplash

Dip in Property prices

Last year, the troubled property market saw the worst decline in new home prices in approximately nine years, dragging on the broader recovery.

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China's economy grew 5.2 per cent last year, as credit has been diverted from the property sector towards manufacturers and as investment into infrastructure held up.

The southwestern second-tier cities of Chongqing and Chengdu were the most affected by home foreclosures, logging in the most auctions last year, China Index Academy said.

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The number of foreclosures has been gradually rising since 2020, the firm said, and the number has continued to rise in the early days of 2024.

Earlier this month, the Chinese e-commerce company JD.com said its e-auction platform has sold 11 homes worth more than 10 million yuan each in the first ten days of January.

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The company further said it planned more auctions of luxury homes in top-tier cities such as Beijing and Shanghai during the lunar new year holidays. 

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Published January 22nd, 2024 at 16:06 IST

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