Country Garden sales drop 72% as China’s housing woes persist

COUNTRY Garden Holdings’ sales slump dragged on last month, adding to the Chinese developer’s woes as it tries to avoid liquidation.

Contracted sales for July dropped 72 per cent from a year earlier to 3.4 billion yuan (S$630 million), following a 73 per cent slide in June, corporate filings show. The tally was 21 per cent lower from the previous month.

The distressed real estate giant is counting on a turnaround in sales to increase its survival chances, as it fights a wind-up petition in a Hong Kong court following its 2023 default. Last week, it was given more time to work on an offshore debt restructuring plan when the case was adjourned to January.

“Buyer concerns around Country Garden’s liquidity means they are likely to avoid its projects until fully completed,” Bloomberg Intelligence analyst Kristy Hung said on Aug 1.

Country Garden’s month-on-month decline in home sales is smaller than the 36 per cent slide at the 100 biggest real estate companies tracked by China Real Estate Information.

A recent rescue package has failed to revive China’s housing market, which remains a major drag on economic growth.

SEE ALSO

Country Garden liquidation hearing adjourned to January next year, court says

Country Garden returns to court to make case against liquidation

Country Garden’s home sales slump persists as aid fails to help

Country Garden gets trading resumption guidance from Hong Kong exchange

More

THE BUSINESS TIMES INSIGHTS

Powering Asean's Future 2026

Find out how enterprises are navigating power constraints and sustainability targets

ACCESS THE INSIGHTS

New home prices dropped at close to the fastest pace in almost a decade in June, giving people less reason to invest in property.