The major point is Chinese property is much larger in GDP terms than anywhere else and you need to add negative wealth effects as well if it deflates. Goldman:
China’s property sector has been in focus given intense regulatory pressure on developers’ leverage and banks’ mortgage exposure, and consequent contraction in sales and construction activity. Given recent weakness, it is natural to ask how significant a hit this could pose to the economy.
A wide range of estimates for the scale of China’s property sector — up to about 30% of GDP — have been reported in the media and by other analysts. Different definitions of the scope of the sector largely account for the disparity.
