Real estate giant Country Garden's sales plummeted in November

Chinese real estate group Country Garden's sales fell sharply in November, raising concerns about the company's liquidity problems.

Country Garden's monthly sales decline far outpaced the 6.9% decline among China's top 100 property developers - Photo: BLOOMBERG

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

Over the past two months, China has rolled out its most aggressive policy package yet to stabilize the property market, including cutting interest rates on outstanding mortgages, easing home purchase restrictions in major cities, abolishing housing standard classifications and reducing home purchase taxes.

However, as deflationary pressures exacerbate economic challenges, China's housing market sales fell again after a brief recovery.

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

However, the rate of decline in Country Garden's sales is now more severe than that of its industry peers.

Country Garden's monthly sales decline far outpaced the 6.9% decline among China's top 100 property developers tracked by the CRIC Real Estate Research Institute.

According to data from the China Index Research Institute (CIA), from January to November 2024, the total revenue of China's 100 largest real estate developers was more than 3,000 billion yuan, down 32.9% year-on-year. However, the rate of decline narrowed by more than 1.8 percentage points compared to October.

A total of nine property developers in China achieved revenue exceeding 100 billion yuan between January and November 2024, down seven from the same period in 2023, reflecting a significant decline among the industry’s largest players.

Besides, the number of companies with revenue of over 10 billion yuan in China is 76, down 32 companies compared to the same period last year.

This shows that not only large corporations but also mid-sized enterprises are facing great difficulties in the context of China's real estate market continuing to face many challenges.

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