In the January-August period this year, the sales of China’s top 100 real estate companies amounted to RMB 4.36561 trillion, down 8.6 percent year on year, as announced by CIA, the largest independent property research organization in China. In August alone, the sales of the top 100 Chinese real estate companies indicated a year-on-year decline of 39.2 percent and a month-on-month decrease of 8.9 percent.
The continuous poor performance of the real estate industry is expected to indicate a change for the better.
Recently, Chinese policymakers have issued several stimulus polices: for instance, several cities in China will loosen loan restrictions for house buyers. Buyers who have already taken out a loan but do not have a house registered in their name may be eligible for reduced downpayment percentages and favorable loan interest rates. Previously, such customers had to face a high downpayment percentage and much higher interest rates than those who bought houses by taking out loans from banks for the first time.
Sentiments among house buyers may improve in the coming period, which will exert a positive impact on the real estate industry and will also bolster the demand for steel.