China’s housing crisis deepened in April 2025 as land sales revenue fell 21% year-on-year to 238.9 billion yuan ($33 billion)—the lowest level since May 2016. This sharp decline in income from state-owned land transfers has intensified fiscal pressure on local governments, which rely heavily on such revenue to fund public services and infrastructure.
The slump reflects broader weakness in the property sector, with home prices falling, investment slowing, and sales stagnating. Economists warn that developer funding remains tight despite policy support, limiting new land purchases and construction starts. Goldman Sachs analysts expect land revenue to remain under pressure for the foreseeable future.
In response, Beijing launched its most aggressive rescue plan yet, easing mortgage rules and allocating tens of billions of dollars for local governments to buy unsold homes. Additional proposals include buying back unused land from developers, aiming to stabilize the market and ensure project completions.
Despite these efforts, questions linger over implementation and long-term effectiveness. Analysts note that the priority remains on finishing existing developments rather than initiating new ones, signaling a shift in China’s real estate strategy amid prolonged economic uncertainty.
