China Property Investments Fall 4% in 2022 Ahead of Bond Maturities

China property investments fell 4% from a year earlier in January-May, official data showed on Wednesday, as the sector continued to deteriorate.

The China property investments figure followed a 2.7% year-on-year decline in the first four months.

Real estate sales by floor area fell 23.6% year-on-year in the first five months, extending the 20.9% decline in January-April, according to data from the National Bureau of Statistics (NBS).

New construction starts measured by floor area plunged 30.6% in January-May from a year earlier, after a 26.3% fall in January-April.

Funds raised by China real estate developers slumped 25.8% year-on-year in the first five months, compared with a 23.6% fall in the first four months.

Adrian Cheng, co-head of China property at Fitch Ratings, said the agency maintains a “deteriorating” sector outlook for China property developers.

“The operating environment for Chinese developers will remain challenging in the second half of 2022,” he said.

The sector faces a $ 22 billion in offshore bonds maturity in the second half of this year.

“This still presents significant liquidity pressure for developers. Other funding channels, such as bank financing and pre-sales proceeds, have not seen significant improvements, ”Cheng said.

  • Reuters, with additional editing by George Russell

READ MORE:

Chinese Developer Seazen to Test Offshore Market With Green Bond

China Developer Greenland Seen Deferring $ 488m Bond Debt

China to Launch First Residential Property REITs Soon

George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post .

Leave a Comment