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China’s Top 100 Real Estate Companies Suffered Poor Sales in January

Jiemian News, the online news site under the Shanghai United Media Group, recently reported that in January, the sales of China’s top 100 real estate companies fell  by 40 percent year-over-year. The real estate market is still experiencing a low performance. In the meantime, top revenue segments are shrinking in size. According to data from the China Index Academy, in January, 2022, there were only 15 housing companies with sales exceeding RMB 10 billion (around US$1.57 billion), a decrease of 14 from the number in the same period last year. Only 22 housing companies had sales exceeding RMB 5 billion (around US$787 million), a decrease of 31 from the same period last year. The third camp (RMB 3 – 5 billion, US$472 – 787 million) fell the fastest. With only 20 left, with the average sales growth rate was at -33.8 percent. In January, the Chinese real estate market got off to a bad start with a sharp decline in supply and demand. In 29 key monitored cities, for the commercial housing market, supply decreased by 43 percent year-over-year, and sales decreased by 46 percent year-over-year. In the first-tier cities, the sales of commercial housing in Beijing and Guangzhou were sluggish, with a year-over-year drop of nearly half. And in Shenzhen, the decline was as high as 60 percent. Industry insiders expressed the belief that the intensified downward pressure on the market and the strong wait-and-see mood of home buyers are the main reasons for the decline in many cities. It is expected that the supply will shrink in February due to the Chinese New Year holiday and sales may continue to decline. A number of research institutions pointed out that the financing environment for housing companies in 2022 remains discouraging, and the debt repayment pressure on these companies will remain heavy in the short term.

Source: Jiemian News, February 7, 2022