The Great Collapse: Why China’s Property Bubble Finally Burst in 2025 | Digging into China
In July 2025, China's housing market faces a severe crisis, with Beijing leading a 1.1% month-on-month decline in second-hand home prices, followed by Shanghai, Guangzhou, and Shenzhen. The collapse of these key markets signals a broader real estate downturn, with transaction volumes plummeting up to 35%. State-owned enterprises are tasked with absorbing 408 million square meters of excess inventory, but the allocated 300 billion yuan falls short. This crisis, coupled with declining retail sales and industrial output, is eroding middle-class wealth, with 70% of household assets tied to real estate. The shift toward a state-controlled rental system raises concerns about deprivatization and political compliance. The collapse of Evergrande and widespread unemployment in construction signal a fracturing social order, as real estate, a quarter of GDP, impacts over 60 industries, threatening economic stability and social trust.
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0:00 Intro
0:07 The Shattering of a Stronghold
1:33 A Market in Freefall
2:23 The State Steps In
3:32 A Drop in the Ocean
4:45 The Wealth Reset
5:21 Economic Ripples
6:52 A Dire Predicament
7:25 A Fractured Social Order
8:34 Human Toll of the Collapse
9:39 Dreams Turn to Dust
10:48 The Rise of State Control
11:30 A Frozen Economy
12:44 A Loss of Faith
13:32 Wealth in New Hands
14:15 A Nation at the Brink