China’s home sales dropped by 39.7% in July due to the mortgage revolt

In July, the country’s leading 100 property developer's sales fell by 39.7% compared to 2021 to $77.6 billion, and from June, the sales fell by 28.6%, finishing a two-month recovery in month-to-month sales growth.
The major reason for the low sales is the mortgage revolt and its impact on the buyers’ confidence.
The revolt began at the end of June at an Evergrande project, in central China’s Jiangxi province, where home buyers threatened to cancel mortgages on unfinished properties, and hundreds of buyers from 320 projects across the country followed the suit as of July 29.
In 30 cities, new home sales fell 12% in the week ending July 10 compared to the week before, then fell 41% in the week ending July 17.
China’s overall property loans grew slowly till June, as banks were careful lending to cash-strapped developers while household demand for mortgages was weak and new home prices dropped for a 10th consecutive month in June.

Image: Business Insider

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