TAIPEI (Taiwan News) — An estimated 233 home developers in China filed for bankruptcy last year, according to the China Real Estate Association.

The highest number of bankruptcies was in Zhejiang Province, with 36 cases accounting for 15.45% of the nation’s total. Hunan and Guangdong provinces were second and third respectively.

However, the report added the number of bankruptcies for 2023 was the lowest since 2020. There were 408 home developers who filed for bankruptcy in 2020, the first year of the COVID-19 pandemic, 343 in 2021, and 308 in 2022.

The economic downturn caused home developers in third- and fourth-tier cities to suffer the most. Even so, the overall impact of the bankruptcies is expected to be limited.

China-based CRIC Securities' research department indicated that home sales in China continued to dwindle in 2023 and challenges would persist in 2024 despite favorable policies. Low consumer confidence and inventory overhang means China's housing market could remain sluggish for a long while.