It is quite evident that the current COVID-19 pandemic has taken over China’s economy. Due to this, all the housing projects have been put on hold.
Foreign investors are fearing that China’s serious decline in the economy and Xi Jinping’s obstinate zero-covid policy are just some issues that have got the foreign investors worrying. It is making them question whether China is really losing its practical approach to handling the economy.
One such example of China’s property crisis is of the Jing’an century, which is a housing development project with ponds and lush greenery situated in North Shanghai. Ideally, it should have been hustling and bustling with activities as the workers get ready to put the finishing touches on the flats.
Instead, the area is silent, because of the two-month lockdown, forcing the builder Yanlord, a large group to put a halt to the construction.
Yanlord is being forced to tell its customers that they will not be receiving their properties at the designated time. At least 20 housing development properties like these situated across the city are facing the same issue and have announced delays.
It is said that the lockdown has been so strict that everywhere a police checkpoint has been set up due to which the workers and the construction materials are unable to reach the site.
In April, Yanlord’s pre-sales of homes decreased by more than 80% compared to 2021.
According to the financial market platform Dealogic, Xi’s policies have had such an intense effect on global markets that they have wiped $2 trillion off the value of Chinese stocks listed in Hong Kong and New York. In 2022, Chinese initial public offerings in these two cities have almost come to a halt.