China's Real Estate Crisis: Record High Foreclosures in 2023

Debt-laden property sector sees 43% increase in residential foreclosures, contributing to economic slowdown and foreign investment outflow.

China's real estate sector, laden with debt, has seen a record high number of property foreclosures, reaching 796,000 in 2023, a 36.7% increase from the previous year.
Residential foreclosures accounted for 389,000 of the total, a 43% increase from 2022, with only 99,000 of these homes finding buyers at auction.
The cities of Chongqing and Chengdu had the highest number of home foreclosures in 2023.
China's economy grew at a rate of 5.2% in 2023, below the trend of over 6% that was common before the COVID-19 pandemic.
Foreign investors pulled an estimated $65 billion from China's economy in 2023, with a predicted outflow of the same amount in 2024.