Problems for China’s property market continued into 2022, as total sales of the country’s top 100 developers fell in value by 39.6% year-on-year in January, reports Caixin. The majority of the companies in the top 100 recorded lower sales than in the same month last year and the value of total sales was 43% below the 2021 average, according to a report by China Real Estate Information Corp (CRIC).
China Evergrande Group, whose debt woes made it a poster child for China’s property slump, recorded RMB 2.95 billion ($460 million) in January sales, sinking to 49th place in the list. In 2021, Evergrande ranked fifth in total sales with RMB 435.63 billion yuan and averaging more than RMB 36 billion per month.
The property market is unlikely to recover in February, as both supply and demand in first- and second-tier cities will be squeezed by the seven-day Lunar New Year public holiday, which started on January 31, CRIC said in its report. Housing sales in third- and fourth-tier cities, traditionally a destination for people fleeing first-tier cities for a lower cost of living, may become weaker this year.