In July, sales of the top 100 real estate developers in China fell by 33.1% compared to the previous year, according to data from real estate sector specialist CRIC, as reported by the economic news portal Yicai.
The sales amounted to about 350.4 billion yuan (US$48.773 billion, €44.405 billion), marking a 33.5% decline from the previous month.
Due to high temperatures and typhoons, July is typically a slow sales season in China’s real estate market.
Despite this seasonal pattern, the overall sales decline for the year’s first seven months is 4.7% compared to the same period in 2022.
The report highlights that only ten of the 50 largest developers recorded an increase in sales in July, while about thirty faced drops of over 50%.
Several insiders cited by Yicai stated that the real estate market significantly weakened last month, especially in cities like Hefei and Nanchang. Some companies managed to close deals only by reducing prices.
The financial situation for many Chinese real estate companies worsened after Beijing announced restrictions on bank financing access in August 2020 for those with high debt levels.
Recent government actions include support measures and multimillion-dollar credit lines from state banks to complete housing constructions, reflecting Beijing’s concern for social stability amid the housing crisis.
The authorities have recently promised to continue support packages and “adjust and optimize” measures for the sector, recognizing “significant changes” in supply and demand.
Both the Housing Ministry and the central bank have considered reducing interest rates for mortgages and down payments for first homes as potential steps to ensure a “stable and healthy” market development.
Official figures also show a 5.3% decline in commercial property sales by land area in the first half of the year, following a 24.3% plummet in 2022.