Market Size of China Home Mortgage Finance Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | < 4.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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China Home Mortgage Finance Market Analysis
The Chinese home mortgage finance market is poised to register a CAGR of 4% in the upcoming five years.
The Chinese home mortgage finance market was once booming but is now on the verge of a slump. Many homes in China are sold even before they are fully built, which is an important source of income for the developers and often allows them to take on multiple projects at once. At the moment, house prices are falling sharply, people are buying less real estate, construction is slowing down quickly, and mortgage defaults are going up, all of which are bad signs for this market.
The COVID-19 pandemic had a negative impact on the home mortgage finance market in China. The financial services industry and the wealth and debt levels of people were getting worse over time. For individual homeowners, mortgage debt was the single largest source of debt and had the most significant effect on their finances and their ability to stay solvent through wage decrease or wage losses. Most of the time, mortgages are the most important asset on a lender's retail banking book. Changes in originations, repayment schedules, and default rates will have a big effect on the lender's ability to make money and stay liquid.
As households and businesses start to worry about the recession and become less willing to take on more debt, they are more likely to cut back on spending and investing. This could lead to a balance sheet recession and speed up the mortgage crisis in China. Also, with less money to spend, it would be harder and harder for homebuyers to pay off their debt. This will create even more loan delinquencies and put more pressure on outstanding mortgages.
