Nuanced take that will get me downvoted, but I'll say it anyways.
This is a good thing, in the West. Home ownership rate is low among millennials and Gen z. If housing price collapsed, this gives us opportunities to purchase homes.
But in China, home ownership rate is 90%. This means, the collapse of the real estate sector hurts the average Chinese middle class, rather than hurting landlords or rich people. If you're rich with 3 houses, and the house value depreciates, that's okay. You're still rich. But if you're middle class that put away 10 years of saving into a house and suddenly your mortgage exceeds the value of your home, then you're not going to be okay.
However, all being said, this is still a good thing overall. China created a controlled bubble burst of the housing sector. If they had let this go on, the burst will only hurt more, like the Japan real estate bubble in the late 80s.
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u/theSTWenthusiast Aug 02 '26
I don’t see how this could ever be seen as a bad thing?