The China Index Academy recently published its January report “Sales Performance Ranking of Chinese Real Estate Enterprises.” Shanghai-based Chinese financial news site East Money wrote about the data from the report, commenting that in January this year the total sales of the TOP100 Chinese real estate companies suffered a year-over-year decrease of 33.3 percent. The decline was 1.6 percent worse than the same period last year.
The China Index Academy report mentioned that January of 2023 saw the relaxation of China’s strict Zero-COVID policy, leading to a surge in demand and relatively high sales during that period. Thus, the baseline for January 2024’s year-over-year change in sales was relatively high. Meanwhile, the real-estate market is currently quite sluggish, the sector as a whole in recession, and Chinese real-estate giant Evergrande is facing liquidation.
According to statistics from the Academy’s report, the transaction area of new homes in 100 key cities fell by about 33 percent month-over-month. Overall market sentiment remains weak. In terms of second-hand housing, transaction volume in key cities increased slightly month-over-month, and the market remains active. The area of new homes approved for sale in 50 key cities fell by about 50 percent month-over-month and more than 15 percent year-over-year. The overall scale of supply is at a low level.
Source: East Money, February 1, 2024