In China’s mid-Autumn Festival holiday this year, the housing market is still flat. Houses sales in September and October, China real estate’s most important sales season, may not be good as expected. Housing prices in some regions return to rationality. People are not rushing to buy homes in big cities today. The real estate industry has made some special promotions, such as discount or reducing price, to get cash, and the housing market has gradually entered the buyer’s market.
During September, 18 builders supplied more than 9,000 homes, but less than 40% sold successfully.
In the first half of this year, the weighted average net debt ratio of 170 builders had increased to 92.56%, an increase of 4.04% from the beginning of the year. 60% of firms ‘ net debt ratios are showing signs of rising. The money from pre-sale housing has become an important source of funding for China’s construction business, coupled with the authorities ‘ lending and curbing soaring housing prices.
Under the pressure of money and buyers are now not in a hurry to buy housing, the builders can only compromise allowance sales, to seek cash recovery.