After meeting less than 30% of their annual sales target as of May, Chinese real estate developers are expected to ramp up project launches in the third quarter of 2022, while maintaining attractive prices, SCMP notes. This arises from the news that revenues at the country’s top hundred property developers reached RMB 454.7bn ($68.1bn) in May. While this number is about 60% lower YoY, on the positive side, it represents a 5.6% MoM increase. In March and April, sales fell by 26% and 47% respectively, as per data from the National Bureau of Statistics (NBS). SCMP adds that coupled with a slow but gradual recovery in market sentiment, sales are also likely to be bolstered by the support of government policies. For instance, as the People’s Bank of China (PBOC) cut the 5Y loan prime rate by 15bp to 4.45% on May 20, commercial banks in China cut mortgage rates by about 1% and reduced the down payment necessary for first-time homebuyers to 20-30%. These moves are expected to revive demand for home buying and provide some respite to the troubled sector.
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