• Existing housing inventory in China would take about two years to clear, at current rate of sales, Hao Hong, chief economist at GROW Investment Group, told CNBC Thursday.
  • Housing stock under construction will probably take more than 10 years to clear, Hong added.
  • Home sales growth and home prices have remained sluggish as real estate developers are mired in a spiraling debt crisis since 2020 when Beijing kicked off a broader deleveraging of the once-bloated real estate sector — which accounts directly and indirectly for about one third of China's economic activities.
The site of a real estate building under construction in Huai 'an city, Jiangsu province, China, December 26, 2023.

China is facing the prospect of a long-drawn correction in its property sector, with the overhang in the housing inventory likely to take more than 10 years to clear, according to Hao Hong, chief economist and partner at GROW Investment Group.

"If you look at the inventory overhang situation — at this sales rate — it will take about two years to clear all the inventory that is outstanding in the market," Hong told CNBC Street Signs Asia on Thursday.