With the government’s ongoing and persistent efforts to cool the red-hot property market, Chinese property developers are struggling to sell properties while becoming more encumbered with debt.
The debt of the country’s property developers rose 41.27 percent year on year to 1.05 trillion yuan (about 161.53 million US dollars) by the end of March, the Wind Information, a Shanghai-based financial data provider, said in a recent report.
Of 113 listed property developers that had filed their first-quarter reports to Chinese stock exchanges, 25 reported profit losses and 42 registered slower profit growth rates from January to March. Most of them are small and medium-sized property developers.
The country’s top three property developers, China Vanke, Poly Real Estate Group Co., and the Gemdale Corp. also saw moderate declines in profit growth during the period.
“The recent government control over its property market has restrained half of the demand. Small property developers will first feel the pinch,” said Zhang Dawei, an analyst with the Beijing-based Centaline Property. (Xinhua)