Shenwan Hongyuan Securities:
China’s 50 major property developers’ property sales (red line in the chart) reached 705.2 billion yuan in September, falling 10% from the pervious month, sliding 37% from a year earlier and down 22% from the same period in 2019.
Their property sales measured by floor space totaled 47.62 million square meters, sliding 22% from the prior month, plunging 44% from a year earlier and falling 30% from the same period in 2019.
During the first nine months of the year, the 50 developers’ total sales reached 7.95 trillion yuan, up 11% from a year earlier and rising 24% from the same period in 2019. Their total sales measured by floor space reached 542.49 million square meters, up 4% from a year earlier and growing 15% from the same period in 2019.
The weak performance was attributable to high comparison base in September last year, tightening policy on home mortgage loans in several regions, introduction of reference price for second-hand home transactions in 14 cities and tightening of liquidity condition.
Assume that real estate policy will not be adjusted, property sales are expected to weaken further.