Recently, Chinese real estate companies have released their performance reports and overall sales are generally sluggish. The largest, Country Garden Holdings, reported a 37.35% decline in sales.
On December 5, Country Garden released unaudited operating data for November 2022. The report showed company sales at 26.01 billion yuan ($3.73 billion), a 22% fall compared to October with $4.7 billion. In the first 11 months of this year, the giant racked up nearly $48 billion in sales, down 37.35% year-on-year.
The Guardian reported weakening performance of the company in August with a 96% profit plunge. At that time, the company blamed a “severe depression” in China’s crisis-hit property market and said “only the fittest can survive.”
Until now, there has been no sign of recovery.
According to the data from the China Compass Institute, from January to November, total sales of the top 100 real estate enterprises reached slightly over 6.67 trillion yuan ($957 billion), down 42.1% year-on-year.
China Real Estate Residential Information Service Platform (CRIC) analysts expected the annual performance of the top 100 real estate companies to drop by more than 40% year-on-year. Although the regime has adopted some measures of support and relaxation, overall sales of the entire market is still sluggish due to gloomy market demand and purchasing power.
The international rating agency Standard & Poor’s downgraded Country Garden’s credit rating from “BB+” to “BB” in September this year.