Chinese developers expected to speed up sales in third quarter after meeting less than 30 per cent of sales targets for year as of May
- Sales revenues at China’s top 100 property firms in May showed a yearly decline of 60 per cent but also a month-on-month rise of 5.6 per cent, according to CRIC
- Developers’ contracted sales will see a strong recovery from June, on improving sentiment and supportive measures: CGS-CIMB Securities executive
Most Builders were behind on their annual targets, China Real Estate Information Corporation (CRIC), one of the largest real estate brokers in mainland China, said on Wednesday.
But there was some good news. Sales revenues at the country’s the top 100 property firms reached 454.7 billion yuan (US$68.1 billion) in May, which although represented a decline of 60 per cent from a year ago, also showed a month-on-month rise of 5.6 per cent, CRIC said. It looked like sales had found the floor and had stopped falling further from March and April, the broker said.
The sales were expected to be boosted further by supportive government policies. Banks in mainland China had recently cut mortgage rates by about 1 percentage point compared to a month ago and reduced down payment requirements for first-time homebuyers from 30 to 40 per cent to 20 to 30 per cent.
