Real estate giant Country Garden's sales plummeted in November

Sales at Chinese real estate developer Country Garden plummeted in November, raising concerns about the company's liquidity.

Country Garden's monthly sales decline far exceeded the 6.9% drop seen among China's top 100 real estate developers - Photo: BLOOMBERG

Country Garden's contract sales fell 52.3% year-on-year, from 6.11 billion yuan to 3.01 billion yuan in November, a larger drop than the 31% decline in October, according to Bloomberg.

Over the past two months, China has implemented its strongest policy package yet to stabilize the real estate market, including lowering interest rates on outstanding mortgages, easing restrictions on home purchases in major cities, abolishing housing classification standards, and reducing home purchase taxes.

However, as deflationary pressures exacerbated economic challenges, housing market sales in China declined again after a brief recovery.

Foshan-based real estate group Country Garden has pursued a low-end market strategy in recent years, primarily focusing on migrant workers and second- and third-tier cities.

However, Country Garden's sales decline is currently more severe than that of its competitors in the same industry.

Country Garden's monthly sales decline far exceeded the 6.9% drop seen in the top 100 Chinese real estate developers tracked by the CRIC Real Estate Research Institute.

According to data from the China Index Institute (CIA) from January to November 2024, the total revenue of the 100 largest real estate developers in China was over 3 trillion yuan, a decrease of 32.9% compared to the same period in 2023. However, the rate of decline narrowed by more than 1.8 percentage points compared to October.

Between January and November 2024, a total of nine real estate development companies in China achieved revenues exceeding 100 billion yuan. This represents a decrease of seven companies compared to the same period in 2023, reflecting a significant decline among the largest enterprises in the industry.

In addition, the number of companies with revenues exceeding 10 billion yuan in China is 76, a decrease of 32 companies compared to the same period last year.

This shows that not only large corporations but also medium-sized businesses are facing significant difficulties amidst the continuing challenges in the Chinese real estate market.

Source: https://tuoitre.vn/dai-gia-bat-dong-san-country-garden-sut-giam-doanh-so-nghiem-trong-thang-11-20241205142245992.htm