Dive Brief:
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An oversupply of housing in China has pushed home prices down and heightened international concern that the bottom is about to fall out of the real estate market there.
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More than 22% of houses in China’s urban areas are vacant, according to one Chinese study. This is up from 20.6% in 2011. In July, house prices rose in just six of China’s 70 major cities. Meanwhile, fewer commercial buildings have sold since the beginning of the year, compared with the same time period last year.
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China’s economy has grown by more than 10% a year since 2010, but a housing crash could substantially slow that pace.
Dive Insight:
China is the largest contributor to the world’s economic growth, surpassing the U.S. in 2007. Since then, it has been frantically rebuilding its cities, making it a huge importer of building materials. A drastic reduction in building there could be felt around the world.