China's property market has now wiped out two decades of price appreciation. According to Hedgeye, the country's real estate sector has given back all gains accumulated over the past 20 years.
Researchers estimate that 85% of the gains seen between 2011 and 2021 alone are already gone. The broader collapse stretches further back, erasing valuations to levels not seen since the mid-2000s.
For context, real estate accounts for roughly 70% of Chinese household wealth. This isn't just a housing story. It's the largest destruction of middle-class wealth happening anywhere in the world right now.
The Chinese government repealed its "three red lines" policy in January 2026 in an attempt to stabilize the sector, but prices continue to fall. The property crisis that began with Evergrande in 2021 has now entered its fifth year with no bottom in sight.
Researchers estimate that 85% of the gains seen between 2011 and 2021 alone are already gone. The broader collapse stretches further back, erasing valuations to levels not seen since the mid-2000s.
For context, real estate accounts for roughly 70% of Chinese household wealth. This isn't just a housing story. It's the largest destruction of middle-class wealth happening anywhere in the world right now.
The Chinese government repealed its "three red lines" policy in January 2026 in an attempt to stabilize the sector, but prices continue to fall. The property crisis that began with Evergrande in 2021 has now entered its fifth year with no bottom in sight.
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