What’s new: China’s housing market started 2023 with a whimper as demand remained sluggish for an industry that has been hit hard by a debt and confidence crisis, industry data show.
The 100 largest Chinese developers by sales sold 354.3 billion yuan ($52.5 billion) worth of new properties in January, down 32.5% from a year earlier and 48.6% from the previous month, according to a Tuesday note from China Real Estate Information Corp. (CRIC), a consultancy.
Subdued demand and weak purchasing power took a toll on sales last month, the CRIC analysts said, adding that the Lunar New Year holiday contributed to the decline.
The context: The Lunar New Year, which fell in January this year, is typically a dry period for the housing market as people tend to spend time with family and friends rather than buying a home during the seven-day public holiday. Even so, sales in 30 major cities last month failed to keep pace with the total from February 2022, when last year’s Lunar New Year holiday took place, the CRIC data show.
There was also weakness in the land market as China’s top 100 developers by parcel purchases bought 29.4% less land by value in January compared with a year earlier, according to data from China Index Academy, another real estate consultancy.
Related: Chinese Developers Face $141 Billion Wall of Maturing Bonds in 2023
Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Michael Bellart (michaelbellart@caixin.com)
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