More signs have emerged that China’s housing market is cooling, with sales in the secondary market, land purchases by developers and contracted sales at the biggest builders all falling last month, as these three charts show.
Sales of existing homes, which are quarantined from the government curbs on the new home market, last month plunged to a four-year low in 10 major cities tracked by China Real Estate Information Corp. Lackluster sales will likely weigh on existing-home prices in coming months, Shanghai-based analyst Wang Zhaojin said.
Cash-strapped developers are also pulling back. Land sales in 40 cities tracked by CRIC fell 0.5 percent in the first 10 months from the same period a year ago, a sharp contrast to the previous two years when land sales surged about 40 percent.