Evergrande is interesting - the property market for investing is very strong in Australia (my market) and I understand the US non metro market.

The disconnect is that rents are unstable with discounts and high vacancy rates. However the low interest rates have supported the market.

So Evergrande - it has high debt like most developers and I believe they build to sell mostly with the usual mix of owning office towers, building sites etc. Now here demand for sales is strong, if tenants don’t pay then the landlord can get mortgage deferral. Businesses can ask for loan deferral also if their business has been crushed by COVID.

So what is different about Evergrande? Is it that China doesn’t have blanket loan deferral? Or are sales going south, my recent understanding is that it has recovered. Or is it a 1974 event all over again.

1974?? My old time clients told me that was the worst property market since the depression (which one of them remembered) the market literally stopped in Australia for a few months. Anyone who held a development went broke. Clients from that time told me all their friends went out the back door who were in the market and they only survived by luck being out of the market.

Has Evergrande been caught by COVID? The market stopped for a few months and their debt/development machine has come off the rails.

I assume the government will step in, as the rest of the world has.