According to the International Monetary Fund (IMF), demand for new housing in China is expected to drop by around 50% over the next decade. The IMF attributes this decline to a decrease in new urban households and a large inventory of unfinished or vacant properties. The slowdown in housing demand will make it more difficult for China to absorb excess inventory, impacting the country’s overall growth. China’s real estate sector has accounted for about a quarter of the country’s GDP. However, China’s representative to the IMF disputes the prediction, stating that a significant decline in housing demand is unlikely to happen.