With the continuous pressure on the Chinese real estate market, several real estate enterprises have reported significantly declining performance in the first three months of this year. Among them, the performance of the industry giant Country Garden has attracted particular attention.
According to the latest data, Country Garden achieved equity contract sales of 7.77 billion yuan (RMB) from January to March 2025, a decrease of 42.49% compared to the same period last year, reflecting weak market demand and the current market challenges.
In 2024, Country Garden’s total equity contract sales were approximately 47.2 billion yuan for the whole year, while only 7.77 billion yuan was completed in the first three months of this year.
The primary task for Country Garden in 2025 is to “ensure completion of housing projects.” Yang Huiyan, Chairwoman of the Board of Directors of Country Garden, stated at the annual work conference earlier this year, “In the first half of 2025, our main focus will still be on ensuring the completion of housing projects.”
However, with a significant decrease in sales revenue, there is concern from the public about whether the company can raise enough funds to achieve its completion goals.
In addition to completing the housing projects, debt restructuring is also a key factor for Country Garden in resolving its financial risks. As of the end of 2024, Country Garden’s total borrowing was around 253.5 billion yuan, with foreign debt accounting for approximately 42%. Furthermore, Country Garden incurred a loss of 32.8 billion yuan in 2024.
Country Garden’s challenges reflect the common difficulties faced by the Chinese real estate industry at present.
According to the report “China Real Estate Enterprise Sales Performance Rankings for January-March 2025” released by the China Index Research Institute, in the first three months of 2025, the total sales of the top 100 real estate enterprises decreased by 9.8% year-on-year. In March alone, the sales of the top 100 real estate enterprises decreased by 10.6% year-on-year.
The research center of CRIC Advisory warns that due to many real estate companies choosing to extend or replace their debts in recent years, the total debt due for real estate companies in 2025 amounts to 525.7 billion yuan, with the third quarter being the peak redemption period, with approximately 157.4 billion yuan due.
Industry insiders generally believe that the performance for the rest of 2025 will largely depend on factors such as macroeconomic trends and the extent of consumer confidence recovery.