China Vanke sales reflect property woes

Property developer China Vanke (000002.SZ, 200002.SZ) reported its biggest decline in monthly sales so far this year, to US$1.3 billion in November 2011 from US$2 billion in November 2010, The Wall Street Journal reported. It was the fourth consecutive month of year-over-year declines for Vanke, China’s largest property developer and a bellwether for the industry. The announcement followed a statement Friday by China’s central bank that housing prices have reached a turning point following declines in property investment, land transactions and prices. Credit Suisse released a report predicting an average drop of 20% in the housing market from the mid-2011 peak to the end of 2012 and cautioning that major discounts may not revive sales, Forbes reported. The bank calculated that developers are sitting on enough land to meet 10 years of new housing demand, a figure that increases further when considering the resale market.