Home sales in China fell by 46% in March – Kommersant

Home sales in China fell by 46% in March – Kommersant

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Sales of residential real estate by China’s 100 largest developers amounted to 358 billion yuan ($49.6 billion) in March, reports Bloomberg citing preliminary data from China Real Estate Information Corp. Compared to last year, sales decreased by 46%.

The drop in sales was not as significant as in February, when it was 60%. However, the agency notes, the slowdown in decline is not a reason for optimism. The spring months traditionally mark the peak of home sales in China. For example, last year March sales were up 29% compared to the previous year. And this despite the fact that the market experienced a decline throughout 2022.

The Chinese real estate sector, which has long served as one of the main pillars of the growth of the Chinese economy, has been in crisis since 2021. Thus, in the fall of 2021, it became known about serious financial problems of the China Evergrande Group holding. Its assets were then estimated at $240 billion, and its debts at more than $300 billion. As a result, in January of this year, a Hong Kong court decided to liquidation once China’s largest developer. Also under threat of liquidation There is another major developer – Country Garden. This week he said he would indefinitely postpone the publication of annual financial statements – they were due today, March 31. Problems observed and other large developers in the country.

Kirill Sarkhanyants

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