Shares of Chinese property developers are sliding across the board in Hong Kong, with Longfor Group sliding more than 10%, Times China down more than 8%, R&F Properties plunging 7.8%, Country Garden sliding more than 7%, Seazen Holdings down nearly 7%, Sunac China, China Overseas, Greentown China, China Resources Land and China Vanke also lower.
The latest data released by the National Bureau of Statistics pointed to more weakness in the real estate sector. China’s real estate investment in the first half of the year slid 7.9% from a year earlier and in June alone, property investment fell by more than 20%. The country’s property sales declined at faster pace in June and property developers’ financing fell further. Read more …
The decline of new construction starts are expected to narrow in the second half of the year as low base effects fade, but the recovery of new home sales will take longer time and land acquisitions continue to decline, making it difficult for notable improvement in new construction starts, said China Index Academy in a report.
Construction completions will likely improve further, which will provide some support for real estate investment, and in addition, due to low base last year, real estate development investment is expected to decline at a slower pace, it said.
