(Yicai Global) Jan. 2 -- Cumulative sales of China's top 100 property developers, calculated based on their respective stakes held in real estate projects, grew 6.5 percent last year, a figure far below the 40.5 percent in 2017 and 2018's 35.1 percent.
Frequent reports cropped up in the second half of developers slashing prices to keep payments rolling in, noted Xu Xiaole, chief market analyst at the research institute of online real estate broker Beike Zhaofang, adding market volumes correspondingly declined steadily for seven months from last April to October.
Guangdong province-based Country Garden, Shenzhen-based Vanke and Guangzhou-headquartered Evergrande Group ranked in that order as the top three in a grading that market research firm China Real Estate Information Corp.'s research center released on Dec. 31, with sales of CNY771.5 billion (USD110.3 billion), CNY631.2 billion and CNY608 billion, respectively.
Funding snags, added regulations, and terrain shifting toward a buyer's market in some cities were among the factors checking the sales volume growth rate of China's leading property developers, while a differentiation between medium and small developers also became more marked, The Beijing News reported, citing major online real estate platforms.
This year's overall sales volume will ideally be a bit larger than or equal to last year's, CRIC Research Center also said, expressing its hope the housing market in China's first-tier cities may stage a slight recovery, while that in second-tier municipalities will generally remain stable. Declining demand will exert greater investment pressure on the real estate markets of third-and fourth-tier cities, however.
Investment to develop realty will continue to propel the trend of slight decreases amid the era of stabilization that has supplanted that of developers blindly pursuing sales volumes in all channels, with these companies gradually pivoting their focus from quantity to quality.
Editor: Ben Armour