Date
18 August 2017
A general sense of fear is deterring potential homebuyers from entering the property market, according to a real estate information services provider. Photo: Bloomberg
A general sense of fear is deterring potential homebuyers from entering the property market, according to a real estate information services provider. Photo: Bloomberg

Mainland property market gloomy for rest of year

China’s top 10 developers posted sales revenue of 568.6 billion yuan (US$91.52 billion) in the first six months, 55 percent of all property sales during the period, news portal 163.com reported Tuesday, citing figures from China Real Estate Index System.

CRIES analyst Zeng Yingjie said housing inventory in the Yangtze River delta region and northeastern China remains high and downward pressure on prices is growing.

More than 27 percent of 4,038 property projects in 21 cities are expected to see a drop in prices, China Real Estate Information Corp., said, citing a survey.

Liang Yongguang, general manager of its Guangzhou office, said the central government is unlikely to ease home purchase restrictions, making it difficult to sustain prices in the second half.

Of the 23 listed developers that have announced their half-year sales targets, only Evergrande Real Estate Group Ltd. (3333.HK), China Vanke Co. Ltd. (000002.CN) and China Overseas Land & Investment Ltd. (0688.HK) have achieved at least 50 percent of their goal.   

The average completion rate was 40.3 percent, the report said.

Transactions have been running low and the outlook for the rest of the year is dire, Liang said. There is a general sense of fear that is deterring potential homebuyers from entering the market.

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