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China’s housing market tumbles as sales diminishes

House sales slumped 2.1 percent to 8.1 trillion yuan in the first seven months

China’s $2.3 trillion housing market is severely affected by the outbreak of Covid-19 pandemic as profits and sales have been fluctuating, media reports said. It is reported that the sales of houses slumped 2.1 percent to 8.1 trillion yuan in the first seven months of this year.

Sun Hongbin, the founder and chairman of Sunac China Holdings, told the media, the country’s fourth-largest developer, told the media, “It is very clear that strictly limiting the money flowing into real estate and controlling home prices will be a long-term national policy, and that cooling measures are unlikely to be relaxed.”

The latest curb by the government of China has compelled the region’s seven major mainland Chinese property developers listed in Hong Kong to record less profits and sales in the last one year. It is reported that industry experts indicate that the country’s home sale boom is slowly diminishing because of the current pandemic.

Furthermore, Hong-Kong listed firm Longfor recorded a 12 percent growth year-on-year increase in its half-year core net profit compared to 26 percent for the same period last year. People’s Bank of China and a few property developers in the country expressed their interest to set up a long-term regulatory framework for the real estate sector, at an event organised by the government of China in August.

In the other parts of the world, the induced slowdown due to the pandemic has left the real estate market in a grim situation.

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