“Overall market demand and purchasing power have been overdrawn, while the industry confidence is also at a low level,” CRIC said in the report. “Developers are still facing heavy destocking pressure in the short term.”than the previous month’s 43% decrease, CRIC said in its report. From a month earlier, they fell 28.6%, reversing a June rebound. Combined sales plummeted 49% in the first seven months.
A Bloomberg Intelligence gauge of Chinese property developer shares slid as much as 2.3% to the lowest level since March. The drop also followed news that Evergrandea preliminary restructuring plan by the end of July as promised, instead laying out principles for a future debt overhaul. The Chinese government has been racing to rescue its all-important property sector as a long-standing crackdown on leverage and speculation hits demand. Authorities have cut borrowing costs and down payments among other measures to shore up a sector that accounts for about a quarter of the world’s second-largest economy.
Financial regulators have also urged banks to boost lending to builders to help finish the projects, while the Politburo, the Communist Party’s top decision-making body, last month vowed to maintain property market stability. Authorities are considering ato seize undeveloped land from distressed property firms to help finance the completion of stalled projects, people familiar with the matter said last week.
China’s overall property loans rose at the slowest rate on record as of the end of June, as banks were