Recently, a number of A-share listed real estate companies announced their sales results in April this year. Almost all of these large real estate companies that announced their sales results showed negative sales growth.
Among these listed real estate companies, there are 24 companies with cumulative sales of more than RMB 20 billion from January to April 2022. However, except for Yuexiu Property, whose contract sales in April increased by about 61% year-on-year, the sales of the remaining 23 real estate enterprises in April were all negative. Among them, 18 real estate companies saw their sales cut in April, with a more than 50% yearly decrease.
Real estate leader Vanke’s sales in April fell 38.03% year-on-year; Country Garden fell 57.14% year-on-year; Poly Real Estate, Zhonghai Land property, China Merchants Shekou, China Resources Land, The Gemdale Corporation and China Jinmao fell 40.39%, 35.8%, 52%, 54.6%, 60.53% and 57.4% year-on-year, respectively.
In addition, Sunac China Holdings Limited achieved a 75.20% year-on-year drop in sales in April; Shimao Property Holdings Limited saw a 76.09% year-on-year drop; and three companies, namely Jiangsu Zhongnan Construction Group Co, Logan Group Company Limited and Zhongliang Holdings Group Company Limited all saw a drop in sales of over 70% in April.
Recently, the CCP authorities acknowledged the economic downturn and made it clear that the regulatory policy would be shifted. On May 4, the CCP’s “one bank and two chambers of commerce” simultaneously issued a statement in support of real estate financing. In addition, several secondary cities have already started to loosen their control policies.
【Editor’s note: one bank and two chambers of commerce refer to the People’s Bank of China, the China Securities Regulatory Commission and the China Banking and Insurance Regulatory Commission. 】
The new round of bailout policies simply does not work in the continued economic downturn, employment shrinkage, large housing companies bursting mines, the city closures and limitless PCR testing.
Edited by: Lish
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