China’s Property Sales Slowed in April as Local Gov’ts Limit Loans
Xu Wei
DATE:  May 20 2021
/ SOURCE:  Yicai
China’s Property Sales Slowed in April as Local Gov’ts Limit Loans China’s Property Sales Slowed in April as Local Gov’ts Limit Loans

(Yicai Global) May 20 -- April sales at 19 Chinese real estate developers dropped 18.54 percent from March as local governments tighten credit conditions to curb the housing bubble, the Securities Daily reported today.

Yuexiu Property fared the worst with a 31.74 percent month-on-month plunge in sales, the report said. Agile Group, Midea Real Estate, Logan Group and Kaisa Group Holdings all saw sales shrivel by over 10 percent. All the developers in the survey are based in southern Guangdong province but operate nationwide.

Last year, the People’s Bank of China set new financing rules dubbed ‘the three red lines’ to control the scale of borrowing by real estate companies as the pace of borrowing reached record heights. Banks are also being urged to step up the vetting of personal loans to prevent the money being illegally diverted to the housing market.

The market condition was weaker than expected in April mainly due to local governments’ efforts to curb housing prices and tighten credit loan policies, said Yan Yuejin, head of research at think tank Shanghai E-House Real Estate Research Institute.

Housing prices in many cities rose at a slower rate than last year or even decreased amid intensive regulation, causing some localities to adopt a wait-and-see attitude, said Miao Meng, deputy general manager of E-House’s CRIC business unit.

The price of newly built residential homes in 70 large cities grew 4.4 percent on average in April from a year earlier, less than the 5.2 percent growth in 2020, according to the National Bureau of Statistics.

Editor: Kim Taylor
 

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Keywords:   Properties,House price