China’s top 100 developers report better October home sales, other signals remain weak

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Sales by the nation’s top 100 developers rose in October, the first month of year-on-year increase in 2024

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An aerial view of a housing complex under construction in Huaian, in eastern Jiangsu province on October 17, 2024. Photo: AFP

Yuke Xiein Beijing

Published: 3:00pm, 1 Nov 2024

Sales of new homes at China’s biggest home builders grew from a year earlier for the first time this year last month, aided by Beijing’s surprise blitz of policy stimulus to halt a four-year slump in the property market.

Residential sales by the nation’s top 100 developers rose 7.1 per cent in October from a year earlier to 435.5 billion yuan (US$61.1 billion), according to data published by China Real Estate Information Corp (CRIC) on late Thursday. They surged 73 per cent from September.

“The latest data reflects a positive trend, showing signs of stabilisation and recovery that are effectively halting the downward trajectory,” said Yan Yuejin, vice-president of the Shanghai-based E-House China Real Estate Research Institute. Including second-hand home deals, a fundamental shift is gaining traction, he added.

A drop in new supply and a significant increase in transactions will combine to help reduce existing stock of unsold homes, said Yan.

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China announced a stimulus package in late September, including lowering mortgage rates and down payment ratios and removing buying restrictions to revive confidence among homebuyers, while offering financial lifelines to weak developers. The central bank separately established credit facilities for nonbank financial institutions to invest in stocks.