Most Chinese Builders Face Payment Delays, Credit Suisse Says
“We have put a full stop on land purchases,” Vice President Alex Liu said yesterday in an interview in the southern Chinese city of Guangzhou, which neighbors Zhongshan, where Agile is based. “We’ll stop for at least the next three months and probably assess the situation again after Chinese New Year.” The Lunar New Year runs Jan. 23-25.
Land purchases by Chinese developers plunged 42 percent in the first 10 months this year, according to China Securities Journal, citing data from B.A. & 515J Group. Residential land spending dropped to 65.7 billion yuan ($10.3 billion) at top 10 developers by sales, the newspaper said. The property companies, which include China Vanke Co. and Poly Real Estate Group Co., spent more on residential sites in the less affluent tier-two or tier-three cities than in the metropolitan areas for the first time, the newspaper said today.