More than half of China’s top 20 property developers failed to meet their sales targets in 2011, because of the waning transaction volume in residential housing and government tightening policies, the China Daily reported Saturday.
In a list of China’s top 20 property developers by sales released by China Real Estate Information Corp., only eight realized their sales targets, while 10 failed to reach their targets. Two companies did not make their sales targets public, the report said.
Major domestic developers, including the nation’s largest developer China Vanke Co., Ltd., Shanghai-based Greenland Group and Hong Kong-listed Longfor Properties Co., Ltd., all missed their sales goals in 2011, it noted.
“The lower-than-expected sales volume is in line with market expectations as the central government’s grip on the housing sector is unlikely to be relaxed,” said the report quoting Lu Qilin, research director at Shanghai Deovolente Realty Co.
In 2011, Beijing saw a slump in traded space of 21.74 percent year-on-year. The figure was 17.24 percent in Shanghai and 30.99 percent in Chongqing, the report said.
“China’s property market, especially the developers, will experience a difficult time in 2012, as the current tightening policies will not be eased in the next six months,” Eva Lee, a property analyst at UBS AG said in the report.