China real-estate: Land sales go off cliff
Total land sales fell to 1,767 transactions in May in 300 Chinese cities,
down 45% from a year ago and 19% lower than in the previous month, according to a survey published Friday on China’s leading real estate website Soufun.com. In the same month, the total transaction value for land sales dropped 38% year-on-year, marking a 30% drop from April, to 13.75 billion yuan ($2.2 billion).
“May is traditionally the hot season, but China’s property market has cooled further, “ Soufun said, adding that property developers remain in “wait-and-see” mode.
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Overall property prices in China could push lower this year, as developers with large real-estate inventory are under great pressure to generate cash flow and meet ambitious sales targets, Standard & Poor’s said in a report published on Monday. In particular, sales and financing prospects are likely to be “gloomy” for smaller Chinese developers, especially the unrated ones, some of which may default or be acquired by others, the rating agency warned.
http://www.marketwatch.com/story/chinas ... 2014-06-09