China’s top 100 property developers saw home sales slide over 30% on year in October

>>> THE WIRE - Walk You Through Every Trading Day

Chinese property developers’ home sales declined further in October as the housing market cools. The top 100 property developers saw home sales slide by 32.2 per cent last month from a year earlier, but rose 1.4 per cent from the previous month, according to data from the China Real Estate Information (CRIC).

More than 80 per cent of the developers saw property sales decline year over year last month, with 44 developers recording drops of more than 30 per cent and 37 developers saw home sales decline on both month-on-month and year-on-year basis, according to the data.

Analysts say it’s almost certain that the housing market will cool further and the outlook for developers’ sales in the fourth quarter is not optimistic.

Among the 29 major cities monitored by CRIC, residential property sales by floor space fell by 3 per cent in October from a month earlier, sliding 22 per cent from the same period last year and down 12 per cent from the same period in 2019. In particular, home sales in the 25 tier-2 and tier-3 cities declined 4 per cent month over month in October and dropped 23 per cent from a year earlier, showed the data.

Despite the chill, 32 developers managed to achieve sales of more than 100 billion yuan in the first ten months of the year, six more than the same period last year, and 148 developers’ revenue for the 10-month period exceeded 10 billion yuan, according to data from China Index Academy, one of the largest independent real estate research firms in China.

Country Garden ranked the top with 676.1 billion yuan home sales in the first ten months of the year, followed by Vanke, Sunac and Poly, according to China Index Academy. The top four developers’ total home sales during the period reached 2.17 trillion yuan.

The top 32 developers’ home sales growing by an average of 10.6 per cent year over year, while the average growth for 23 developers with 50 – 100 billion yuan sales in January – October was at 17.5 per cent, 28 developers with 30 – 50 billion sales at 21.3 per cent and 34 developers with sales at 20 – 30 billion yuan at 24.3 per cent and developers with sales at 10 – 20 billion yuan at 21.3 per cent, according to data from China Index Academy.

Separate data from China Index Academy showed that property developers’ bond issuance reached 13 billion yuan in October, only about 40 per cent of the 32.8 billion yuan in September. Their offshore bond issuance fell significantly to only 8.427 billion yuan.

Developers’ average borrowing costs increased by 0.12 percentage points to 4.08 per cent in the onshore market and by 2.66 percentage points to 10.49 per cent in the overseas market, showed the data.