China’s true debt crisis is starting to reveal itself as its real estate market cools. Any prolonged downturn in real estate will have serious global ramifications.
“The land market is cooling down so quickly — it’s as if all the property developers vanished overnight,” said an official at the department that handles government land sales for Changsha, a central Chinese city of 7 million.
“Without income from land sales, where can we get enough money to build roads, schools, hospitals and other projects that Beijing ordered us to do?” asked a man surnamed Wang who works at Changsha’s land auction centre.
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