Once one of the country's biggest growth drivers, China's property market has been in a downward spiral for five years. Real estate values continue to plummet, households in financial distress are being forced to sell properties, and apartment developers that racked up enormous debt on speculative projects are on the brink of collapse.

The crisis began with the collapse of Evergrande, one of China's largest property developers, which defaulted on its massive debt obligations. This triggered a cascade of financial troubles across the sector, with other major developers like Kaisa and Sunac also facing severe liquidity crises.

Falling property prices have created a vicious cycle, where declining valuations force more homeowners into negative equity, prompting additional sales that further depress the market. The government has introduced various stimulus measures and support policies, but confidence remains fragile.

Economists warn that the ongoing property downturn could have broader implications for China's economy, as the real estate sector accounts for a significant portion of GDP and household wealth. The situation continues to evolve, with markets and policymakers grappling with the long-term consequences of the sector's prolonged decline.