Despite the continuous rollout of policies to boost the real estate market by the Chinese authorities, it has not reversed the ongoing downturn in the market. Recently, the top three real estate companies in sales in the Chinese real estate industry, Poly Development, Vanke, and China Overseas Land & Investment, disclosed their financial performance. These three state-owned enterprises saw a sales decrease of over 30%.
On June 6th, Poly Development Group released a sales briefing report. According to the data, in May 2024, Poly Development achieved a contracted area of 1.943 million square meters, a decrease of 26.02% year-on-year, and a contracted amount of 35.314 billion yuan, a decrease of 13.53%.
From January to May this year, the company achieved a contracted area of 7.4783 million square meters, a decrease of 34.99% year-on-year, and a contracted amount of 131.322 billion yuan, a decrease of 33.23%.
On June 3rd, China Vanke Co., Ltd. released a sales briefing report for May 2024 and recent new projects. The data showed that in May 2024, Vanke achieved a contracted sales area of 1.871 million square meters and a contracted sales amount of 23.33 billion yuan, a decrease of 29.17% year-on-year.
From January to May this year, Vanke accumulated a contracted sales area of 7.425 million square meters and a contracted sales amount of 102.21 billion yuan, a decrease of 39.08% year-on-year.
On June 6th, China Overseas Land & Investment Ltd. issued an announcement disclosing the property sales and land acquisition situation for the five months ending on May 31, 2024. According to the announcement, in May 2024, China Overseas Land & Investment achieved a contractual property sales amount of approximately 19.7 billion yuan, a decrease of 32.9% year-on-year, and a sales area of approximately 1.0129 million square meters, a decrease of 12.0%.
From January to May this year, China Overseas Land & Investment accumulated a contractual property sales amount of approximately 101.701 billion yuan, a decrease of 30.8% year-on-year, and an accumulated sales area of approximately 3.9685 million square meters, a decrease of 40.4%.
According to the sales ranking of real estate companies compiled by the China Index Research Institute, the top three sales companies in 2023 were Poly Development, Vanke, and China Overseas Land & Investment.
Additionally, Country Garden Holdings, which ranked first in sales in 2022, recently released unaudited operating data for May. In May, Country Garden achieved shareholder equity sales of 4.29 billion yuan, a decrease of 76.43% compared to the previous year, and a sales area of 440,000 square meters, a decrease of 80.53%.
Based on previous data, in the first four months, Country Garden achieved shareholder equity sales of 13.51 billion yuan and a sales area of 1.38 million square meters. It is known that its accumulated shareholder equity sales from January to May were 17.8 billion yuan, a decrease of 84.21% compared to the previous year, and an accumulated equity sales area of 1.82 million square meters, a decrease of 87.59%.
In recent times, the Chinese central bank, various ministries, and local governments have continued to introduce policies to boost the real estate market but have not reversed the continued downturn in the Chinese real estate market.
On May 31st, the Top 100 Sales Data released by the third-party consulting firm CRIC showed that in May, the Top 100 real estate companies in China achieved a sales turnover of 322.41 billion yuan, a 33.6% decrease year-on-year, with the monthly performance scale continuing to remain at historically low levels. Looking at the cumulative performance, the sales turnover of the Top 100 real estate companies from January to May was 1,413.37 billion yuan, a 44.3% decrease year-on-year.
Apart from the decline in sales performance, Chinese real estate companies also face considerable debt pressure. According to the China Index Research Institute, in 2024, the total amount of bonds due for real estate companies is 770.31 billion yuan, which still remains at a relatively high level.