Sales in China’s struggling property sector continue to slow, compounding developers’ heavy financial burdens as the availability of financing dwindles amid regulators’ ongoing attempts to deleverage the indebted industry, reports Caixin. Last month, property sales of the country’s top 100 developers dropped 32.2% year-on-year by value, following a 36.2% slump the previous month. Traditionally, September and October are a high season for property sales, which are a key source of developers’ funding.
Another major funding source has also come under pressure. Eighty out of the 128 property developers listed on the Chinese mainland reported that in the first nine months of the year, their financing activities cost more money than they brought in, as many saw debt payments outweigh new borrowings. That’s up from 61 developers for the same period last year.
Some property giants listed in Hong Kong have yet to announce third-quarter financial statements, but half-year reports have revealed similar financing difficulties, especially at China Evergrande Group.