China’s home sales spiral despite backstop plan for developers
THE decline in China’s home sales accelerated in November, as buyers remained wary of the turmoil in the country’s real estate sector.
The value of new home sales among the 100 biggest real estate companies fell 29.6 per cent from a year earlier to 390.19 billion yuan (S$73.3 billion), according to preliminary data from China Real Estate Information on Thursday (Nov 30). That follows a 27.5 per cent decline in October.
Sales were down 4.1 per cent from a month earlier. The top 100 developers’ aggregate annual sales are expected to fall 15 per cent from 2022, according to the report.
To stabilise the nation’s real estate market, authorities have issued a wide-ranging basket of policies to loosen buying curbs and lower downpayment requirements. The government has signalled increased urgency to stop a downward spiral in the property sector from derailing growth and endangering financial stability.
Authorities have proposed a draft list of 50 real estate developers eligible for bank support while weighing a plan that would allow banks to offer them unsecured loans for the first time, people familiar have said.
But the task to stabilise the market remains challenging under a broad-based decline. Buyers remain on the sidelines, spooked by construction delays, falling prices and company defaults.
China’s home prices fell the most in eight years in October, signaling the property slump is worsening even after the government ramped up efforts to revive demand. BLOOMBERG
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