China's real estate slump shatters myth of ever-rising prices

Industry withers as people on the ground grope for a way out of crisis

Construction work appears to have come to a halt some time ago on this building in a suburb of the northeastern Chinese city of Tianjin. (Photo by Iori Kawate)

IORI KAWATE, TAKASHI KAWAKAMI and KOHEI FUJIMURA, Nikkei staff writers

December 2, 2023 09:30 JST

BEIJING/GUANGZHOU/DALIAN -- China's real estate crisis enters a critical phase on Monday, when a Hong Kong court is expected to hand down a decision on the liquidation of China Evergrande Group, once the country's largest developer.

The long slump in the industry, which accounts for about 30% of China's gross domestic product, is casting a long shadow over the economy and society as a whole and looks set to continue.