China will knock down structures that could house 75 million people.

The real estate crisis in China is getting worse and worse. According to reports, a campaign of demolition is accelerating throughout the nation.

Indebted Chinese developers are in a crisis as the world’s second-largest economy suffers under the weight of a collapsing real estate industry. China now has large, deserted ‘ghost cities,’ and when construction workers run out of money, demolitions take place. This is the result of massive amounts of debt-fueled construction.

The Telegraph reported that analysts have warned Beijing has adopted a ‘build, pause, demolish, repeat’ programme as Chinese policymakers attempt to control supply in order to prevent a decline in real estate prices and promote economic activity through more development.

The Chinese government is apparently dismantling tower blocks and stopping construction on buildings that could house 75 million people, or more than the total population of the UK, in an effort to boost the country’s stagnant real estate market.

The Telegraph stated that approximately three billion square metres of housing in China have been put on hold or destroyed recently, citing research by Fathom Consulting.

According to News Track Live, there are millions of vacant residences on the Chinese mainland. The already unstable Chinese property market may face difficulties when prices decline even further as a result of the excess of unoccupied houses.