Foreclosure Increase in China (2024)

BEIJING (Reuters) – The number of foreclosed homes in China rose in 2024 from the previous year, a private-sector survey showed on Tuesday, heightening concerns about mortgage delinquencies amid a property slump and uneven economic growth.

The number of repossessed homes up for auction stood at 370,000 in 2024, up from 364,000 in 2023, according to a report from China Index Academy, an independent real estate research firm.

A total of 117,000 repossessed homes were successfully sold, with a total transaction value of 163.6 billion yuan ($22.33 billion), reflecting a 1.9% year-on-year decrease.

Total foreclosures, which include commercial, residential, and industrial properties, as well as land, garages, and parking spaces, amounted to 768,000 units, a slight 0.9% decrease from 2023.

The majority of foreclosed homes were concentrated in tier-three and tier-four cities, with a total of 63,871. In tier-two cities, there were 45,997 foreclosed homes, and tier-one cities saw 6,994.

The number of foreclosures has been gradually increasing since 2020 and continued to rise in 2024. A separate report indicated this trend had persisted due to a severe property crisis that began in 2021, driven by government initiatives to curb indebted developers, which have diminished consumer wealth and household spending.

Policymakers remain optimistic that recent fiscal and monetary adjustments will help reverse the stagnation in the property market, which has contributed to broader economic challenges.

Note: $1 = 7.3274 Chinese yuan