The Chinese property market probably poses one of the greatest downside risks to the global economy in 2014. Construction starts this spring were 20 percent lower than at the same time last year (see Chart 1). At the same time, the stock of unsold properties has risen, and price increases have edged down. In this commentary, we take a closer look at developments in the Chinese real estate market and at transmission channels to other sectors of the Chinese economy and to the global economy.