$124.5 billion worth of bonds are now in default in the entire $175 billion China property dollar bond sector, per Reuters.

China's property sector is expected to face more debt defaults as struggling developers grapple with a challenging outlook for home sales and difficulties in raising funds, according to credit analysts.

The total amount of bonds in default in China's dollar bond sector for property has reached a massive $124.5 billion out of the $175 billion, as reported by CreditSights. This includes what was once China's largest private developer, Country Garden, whose entire dollar bond was considered defaulted due to a cross-default clause.

In October, a total of $60.5 billion worth of Chinese property bonds is due in the next six months, with offshore bonds making up at least one-third of this, according to Dealogic data.

International bondholders of Country Garden are now seeking urgent discussions with the company.

Other companies are also feeling the strain. State-backed Sino-Ocean Group will be convening a meeting of bondholders to propose extending the grace period for repaying bonds' interest from this week to the next. The company cited operational difficulties as the reason for this delay and mentioned its preparedness to formulate a reasonable debt repayment plan if it cannot meet the bond repayment schedule.

Similarly, another major developer, Gemdale, saw a decline in its bonds after its chairman's resignation raised concerns about the company's financial stability.