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China home prices drop following EverGrande crisis
The China Evergrande Group is taking its toll as China’s home prices fell for the first time in six years
New-home prices in 70 cities, excluding state-subsidised housing, slid 0.08 per cent in September.
Falling prices may fuel a vicious cycle by further weakening demand, which is worsening the cash shortage and forcing builders to offer bigger discounts.
It’s the first drop since April 20-15, as the secondary market declines by 0.19 per cent, down for a second month.
September is usually a peak season for the home market however residential sales fell by 17 per cent.
Investments also slid for the first time since early 2020, and the rate of failed land auctions climbed.
Pressure mounts on Evergrande group
Two Hong Kong property agencies are suing the China Evergrande Group over unpaid commissions
It piles pressure on Evergrande, a Chinese-based developer, as it scrambles to raise funds and avoid collapse.
Centa-Line filed a suit against Evergrande in September to recover 3.1 million Hong Kong Dollars in overdue commissions.
Midland Holdings is claiming unpaid commission for two developments in Hong Kong.
Evergrande has vowed to repay its suppliers and contractors in mainland China as soon as possible.
But in some cases, offering apartments or other real estate assets as construction has been halted because of the delayed payments.
