# fiscal pressure

China’s Land-Sale Boom Collapses: Local Governments Face a Trillion‑Dollar Shortfall as Property Slump Deepens

China’s local governments saw land‑sale revenues fall for a fourth straight year in 2025, dropping to about ¥4.15 trillion and roughly halving since the 2021 peak. The slump has tightened municipal budgets, increased debt pressure and cut land‑related spending, prompting proposals for central fiscal backstops and targeted measures to stabilise the housing market in 2026.