Jul 2, 2024
China Vanke’s Home Sales Stall as Property Picture Blurs
Bloomberg News
,![<p>A China Vanke development in Shanghai.</p>, Bloomberg <p>A China Vanke development in Shanghai.</p>](/polopoly_fs/1.2092026.1719944972!/fileimage/httpImage/image.jpg_gen/derivatives/landscape_620/p-a-china-vanke-development-in-shanghai-p.jpg)
(Bloomberg) -- China Vanke Co.’s home sales saw growth stall in June, amid signs of improvement elsewhere in China’s beleaguered housing market.
Contracted sales at the closely watched developer rose 7.9% month-on-month to 25.13 billion yuan ($3.46 billion), the Shenzhen-based company said. That compares with a 12% month-on-month increase in May. On an annual basis, sales in June were 31% lower than last year, slightly worse than the previous month.
Vanke’s month-on-month increase in home sales compares to a 36% rise at the 100 biggest real estate companies tracked by China Real Estate Information Corp.
Vanke is counting on a revival in home sales to generate cash needed to help repay creditors. The company, once considered a sound player in the sector given its state backing, has also been raising funds and exploring asset sales to fight off its liquidity crunch.
China has seen a mixed picture in the housing market since the government unveiled a rescue package in mid-May. New-home sales fell the least in 13 months in June from a year earlier, CRIC figures showed. But prices plunged at the fastest pace in almost a decade in May.
The real estate sector remains a drag on China’s economy, which is on track to undershoot the government’s official 5% growth target for this year, Bloomberg Economics estimated this week.
--With assistance from Foster Wong.
(Updates with chart)
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