Chinese developers further dropped spending on land purchases to RMB 29.6 billion in May, as the country faces a prolonged housing market downturn and a government push to reduce housing stock, reports Caixin. This month saw spending drop from RMB 63.3 billion in April and is 74% lower than in May 2023, according to China Index Academy.
During the first five months of the housing market downturn, the top 100 developers in China spent a total of RMB 314.6 billion ($43.4 billion) on land purchases, down 26.7% from the same period a year ago, according to data from the property research firm China Index Academy. The slowdown accelerated from a 9.5% drop in the first four months.
China’s Politburo has called for efforts to reduce excessive housing inventories as stocks are accumulating across China during the current property market slump.