Chinese developers in 'survival mode' slashes property investment

皇冠正网（www.hg108.vip）是一个开放皇冠正网即时比分、皇冠正网开户的平台。皇冠正网开户平台（www.hg108.vip）提供最新皇冠登录，皇冠正网APP下载包含新皇冠体育正网代理、会员APP。

BEIJING: Chinese developers in "survival mode" sharply cut property investment in July while new construction starts suffered their biggest fall in nearly a decade, suggesting the liquidity-challenged sector is not about to turn the corner anytime soon.

China's property market, accounting for about a quarter of the economy, has been trapped in a capital crisis since the summer of 2020, leading some cash-strapped developers to default on their debts and struggle to complete projects. Wary buyer sentiment has also chilled new investment by developers.

Property investment in July fell 12.3% year-on-year, the biggest decline in 2022, while new construction starts by floor area slumped 45.4%, the largest drop since January-February 2013, according to Reuters calculations based on data from the National Bureau of Statistics (NBS) on Monday.

"Everyone except state-owned enterprises is in survival mode," said a senior official at a Shenzhen-based developer, speaking on condition of anonymity.

"We're all waiting for a recovery and trying to speed up sales and reduce costs and buy less land. But at the end of the day, sales depends on the end users."

Cash-strapped real estate firms have suffered from tight credit conditions since 2020 after regulators issued tough guidelines on new borrowing by developers, concerned about their spiralling debt.

精彩足球推荐分析（www.99cx.vip）是一个开放皇冠体育网址代理APP下载、皇冠体育网址会员APP下载、皇冠体育网址线路APP下载、皇冠体育网址登录APP下载的官方平台。精彩足球推荐分析上足球分析专家数据更新最快。精彩足球推荐分析开放皇冠官方会员注册、皇冠官方代理开户等业务。

For developers in July, loans granted by domestic banks dropped 36.8%, while capital raised from abroad plunged 200%, according to Reuters calculations from the NBS data.

Household loans, including mortgages, fell to 121.7 billion yuan ($18.00 billion) in July from 848.2 billion in June, the central bank said on Friday.

Reflecting the poor buyer sentiment, new home prices fell 0.9% on year in July, the fastest pace since September 2015, and extending a 0.5% decline in June, Reuters calculations based on NBS data showed.

As developers keep to a holding pattern, they are hoping regulators would ease their grip on the sector after a once-in-five-years congress of the ruling Communist Party in the autumn where President Xi Jinping is expected to secure a precedent-breaking third term as leader.

"The main supply-side policies have not yet been relaxed, which are likely to be eased after the 20th CPC national congress," said a developer, declining to be named.

In January-July, property investment fell 6.4% from a year earlier, the most since March 2020.

New construction starts tumbled 36.1%, extending from a 34.4% drop in the first half. - Reuters