China home sales slump deepens

Struggling sector: A real estate project under construction in Shenzhen, Guangdong province. Investors and lenders continue to shy away from financially weak developers as a slump in home sales continues. — Reuters

BEIJING: China’s struggling real estate developers had another miserable month in November as a slump in home sales deepened.

Contract sales by the country’s top 100 developers plunged 38% from a year earlier to 751 billion yuan (US$118bil or RM496.16bil), sharper than the 32% drop in the previous month, according to preliminary data compiled by research firm China Real Estate Information Corp (CRIC).

A widening debt crisis at firms including China Evergrande Group and official efforts to rein in property speculation have combined to crush home demand and hit the world’s second-largest economy, forcing authorities to ease curbs and soothe homebuyer concerns.