Debris can be seen in front of Tao Yuan Singh Du Kongechen, an apartment complex developed by China Fortuneland Development in Qiaoxi District, Hebei Province, China on March 19, 2021. (LushaZhang / Reuters)
Beijing — The Chinese government’s revenue from land sales declined for the fifth straight month in November as tight liquidity involved the country’s most debt-rich developers amid continued market headwinds.
According to Reuters calculations based on Treasury data, land sales across the country in November fell 9.90% year-on-year, but fell below the annual decline of 13.14% in October.
Beijing’s efforts to reduce leverage across the sector, including limits on the amount that developers can borrow, have created a financial crisis this year among real estate companies, including the China Ever Grande Group.
As a result, the desire for underfunded private developers has been sluggish at urban land auctions, putting pressure on local governments to compete for other sources of income.
At this year’s second round of land auctions in 22 major cities that ended in November, private developers took at least 140.6 billion yuan (about 221) from the first round of 533.1 billion yuan (about $ 86.8 billion) in March. I bought 100 million dollars of land. – In June, according to a publicly announced Reuters analysis of sales.
China’s real estate in November was hit by headwinds, with housing prices, sales, investment and construction falling into negative territory, squeezed by sluggish demand and the cash crisis of developers, according to official data on Wednesday.
By Ryan Woo and Liangping Gao
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