Home sales

China new home sales drop 33% over holiday: Evergrande update

(Bloomberg) – Sales of new homes in 23 major Chinese cities fell 33% by area during a five-day national holiday from a year earlier, despite policymakers’ pledges of support for the property market.

The lenders took control of the property where China Oceanwide Holdings Ltd. planned to develop one of the tallest towers in lower Manhattan after the company failed to make mortgage payments. China-based developers are struggling overseas as the government restricts international capital flows.

A Bloomberg Intelligence index of real estate stocks fell 4.4% on Friday, amid a broader market decline. A gauge tracking junk dollar bills fell for the third week in the past four years.

Key developments:

  • China’s stimulus fails to ignite home sales during key holiday
  • China’s Oceanwide loses $410 million at its Manhattan site to lenders
  • China’s real estate sector sees slower loan growth by end of March

Holiday New Home Sales Slump (8:19 a.m. HK)

New home sales in 23 major cities tracked by China Real Estate Information Corp. fell 33% per area, adding to the pain this year, after the top 100 promoters’ combined sales halved in the first four months.

That’s despite the Politburo issuing stimulus vows to stimulate the economy and the top policymaker saying he would encourage ‘real demand for housing’, in his clearest message tolerating easing real estate restrictions.

Oceanwide Loses Manhattan Site to Lenders (8:15 a.m. HK)

Lenders took control of the property where China Oceanwide planned to develop one of the tallest towers in lower Manhattan.

Oceanwide defaulted on a $165 million loan on the project, at 80 South St., in January, resulting in the transfer to receivership as custodian of the property, according to a filing by the developer’s Hong branch. Kong. Oceanwide had invested $410 million in the project.

“The Borrower has not paid all amounts demanded under the Notice of Default,” Oceanwide said in the filing. “The company continuously assesses the legal, financial and operational impacts of the actions to be taken by the original lender.”

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