Slowing property sales and land purchases in October add to the picture of a housing market losing momentum, according to data analysed by Bloomberg, as growth in one of the Chinese economy’s hottest sectors appears to be hitting a ceiling.
Existing home sales – not included within government curbs – plummeted to a four-year low last month across China’s 10 largest cities, reports China Real Estate Information Corp (CRIC). Analysts talking to Bloomberg believe that this will likely drag down existing home prices in the near term.
Developers are also showing weaker sentiment. CRIC data shows that land sales fell 0.5% in the year up to October compared with the same period in 2017, as building groups face record-high debt levels in coming quarters.
They are also responding to the slowing demand, the data suggests. Contracted sales at China’s 100 largest developers fell 11% in October from September, despite efforts to lure potential buyers including free cars and steep discounts.