Weak sales figures and several violent protests are causing concern for China’s property developers, the South China Morning Post reports, at a time of the year usually known for its upbeat housing market.
Last week’s public holiday saw at least two incidents of angry homeowners attacking the offices of developer Country Garden after it was revealed new listings had been recently sold at discounts as high as 30%.
Housing demand has been on a downwards trend in both cities where the protests took place. In Shangrao, the location of the first outburst, sales fell 22% in September from August and 18% year-on-year.
A similar effect is unfolding in China’s largest cities. Despite a slight uptick in sales compared with last year, prices dropped 3% last month from August and 1.4% y/y.
Beijing is attempting to balance competing interests regarding the country’s housing market, which has enjoyed decades-long growth but stoked fears of a bubble. Attempts to cool the market, however, have clashed with recent goals to boost domestic demand of which the property sector is a key component.