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China property firms jumped as major developers showed smaller sales decline

Growth of just 0.15% in China's top 100 cities

Jul 4, 2024 15:11 449

China property firms jumped as major developers showed smaller sales decline  - 1

Shares of Hong Kong-listed Chinese real estate companies rose, after the annual decline in sales of major Chinese builders continued to ease in June.

The market is closely monitoring the impact of the package of measures introduced in May by the Chinese government, which aims to “rehabilitate“ on one of the largest real estate markets in the world.

The sales value of China's top 100 real estate developers in June rose 36.3% from May. On an annual basis, however, it reports a drop of 16.7%, according to the data of the consulting company CRIC.

Nearly a third of these 100 investors, mostly state-owned and state-backed companies, posted year-over-year sales growth in June.

CRIC expects more house purchases following the package of supportive measures, while July's annual decline will continue to moderate due to last year's low base.

Another consulting company in the real estate sector – China Index Academy, reported that the average price of new homes in 100 cities rose 0.15% on a monthly basis in June, their slowest pace in 5 months.

In May, Chinese authorities unveiled what they called a historic support package for the property sector, which has been hit hard by a liquidity crisis since 2021, with many firms defaulting.

You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE