Did China recover?

China’s dynamism at the rendezvous
The explosion of the epidemic has not dampened the dynamism of Chinese society. Despite the drop in international demand, some sectors are booming. Real estate agencies and developers are very busy. Many employees, as in the good old days, are busy on their telephones with their clients until 11pm. The sales data of April came to confirm this impression.

The promoters are in good shape
The research center CRIC, in its latest study, shows that the sales of the 100 most important Chinese promoters in April with 900 billion yuan ( 127 billion dollars) of sales show an increase of 17.2% on March, but above all a growth compared to April 2019. Admittedly, the 0.6% growth is timid, but it comes from afar; the months of January, February and March, respectively, had shown a drop of 12.7%, 37.7% and 17.2% compared to the same months of 2019 (see table below). 

Change in sales of the 100 largest developers in value during the first 4 months of 2020 compared to the same months in 2019:

Real Estate in China

This 0.6% increase and the improved environment suggest that May will be even better. 

Increase in transactions
In terms of the number of transactions, the increase is 43% in March and 5% in April 2019 for the 28 major cities surveyed. The measures taken to facilitate sales procedures and credit easing have had a beneficial influence on transaction volume.

It is certainly still too early to say that China has already recovered. However, it is clear that the real estate is back after an already difficult year and two very slow months.

Find articles on the real estate sector here.
Chinese article consulted: 4月楼市持续回温 百强房企销售额同比年内首次转正

Published May 9, 

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