In November of this year, the sales of China’s top 100 real estate companies decreased by 16.6% compared to October. Over the first 11 months of this year, the sales of the top 100 real estate companies have seen a 32.9% year-on-year decline.
According to a report from the Economic Daily News on December 3, on the night of November 30, institutions such as the China Index Research Institute, Crui and Yihan Think Tank successively released the TOP 100 list of real estate sales performance from January to November 2024.
Data from Crui Research Center shows that the sales of the top 100 Chinese real estate companies in November decreased by 16.6% compared to the previous month and decreased by 9.46% year-on-year. In the same month, the overall sales area of the TOP 100 real estate companies fell by 15.2% year-on-year and 11.7% month-on-month; while the equity sales volume decreased by 3.0% year-on-year and 16.2% month-on-month.
Looking at the data from January to November, the total sales of the top 100 real estate companies in the first 11 months amounted to 3.8516 trillion yuan, a decrease of 32.9% compared to the same period last year. The cumulative turnover of the top 100 real estate companies reached 3.43263 trillion yuan, a decrease of 30.7% year-on-year. According to Guosheng Securities statistics, the turnover of the top 10 real estate companies in the first 11 months decreased by 26%, while other tiers of real estate companies saw a decline of over 30%.
From January to November, sales of real estate companies at all levels have decreased. Crui’s data shows that the average sales of the top 10 real estate companies was 187.61 billion yuan, a decrease of 25.7% from the previous year; the average sales of the top 11-30 real estate companies was 48.01 billion yuan, down 38.4% year-on-year; the average sales of the top 31-50 real estate companies was 23.21 billion yuan, down 38.8% year-on-year; and the average sales of the top 51-100 real estate companies was 11.02 billion yuan, a 38.6% decrease compared to the previous year. In 2024, the sales area of newly built commercial housing is expected to drop to the level of 2009, and the newly started area is estimated to decrease to the level of 2006.
Along with the decline in sales amounts, the enthusiasm of real estate companies to acquire land is also cooling down. Data from the China Index Institute shows that from January to November 2024, the total land acquisition amount of the top 100 real estate companies reached 743.18 billion yuan, a 31.5% decrease compared to the same period last year.
The China Index Institute data also indicated that from January to November, there were 9 real estate companies with sales exceeding 100 billion yuan and 76 real estate companies with sales exceeding 10 billion yuan, representing a decrease of 7 and 32 companies respectively compared to the same period last year.
Regarding this trend, analyst Wang Wen from Tianfeng Securities pointed out that, “the market has maintained a certain level of heat, tempered by slow traditional sales combined with diminishing policy effects, most real estate companies are losing growth momentum, while a few are managing to maintain growth or have relatively strong boosting efforts month-on-month.”
Meanwhile, West Securities Co., Ltd. believes that overall, real estate sales data in November saw a slight decline compared to October, with the month-on-month sales growth rate turning negative and the month-on-month increase turning negative as well, indicating a weaker policy effect.