China's developers post year-on-year drop in housing contract sales
- Asian Market
- 2 months ago
According to property consultancy China Real Estate Consultancy Corp. (CRIC), more than 30% of China’s top 100 developers posted a year-on-year decline in housing contract sales and presales of unfinished homes, for the first month of 2019.
Mainland China’s top three developers, Country Garden, China Evergrande Group and China Vanke, all fell victim to weak market sentiment. Country Garden reported a year-on-year decline of 52.2 % in housing contract sales, which stood at $4.9 billion in January.
Evergrande reported a decline of 32.9% with sales of $6.4 billion, and Vanke reported that sales had decreased by 28.1% to $7.2 billion.
Head of project sales at JLL Shanghai, Stephanie Zhou, commented “Homebuyers are expecting lower housing prices amid the current weak market.”
“A fall in prices of pre-owned flats is expected to continue this year.”
The real estate sector has been a key driver of China’s economy over the past two decades. A total of 1.7 billion square metres of residential property were sold across the country in 2018, rising by 1.3% from a year earlier, overall the sector reported a growth in sales of 7.7% in 2017.
China, the world’s second-largest economy, posted 6.6% growth in gross domestic product last year, its slowest increase since 1990.
Source: Smart Trend Team