China's Kaisa Faces Increased Losses Due to Sluggish Property Deliveries

Wednesday, 21 August 2024, 16:27

China's Kaisa has forecasted a larger H1 net loss amid slower property deliveries, reflecting ongoing challenges in the property sector. Housing sales have noticeably declined, dropping 6.5% year-on-year and a staggering 35.9% since their peak in 2021. This situation highlights the struggle of developers in a troubled market.
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China's Kaisa Faces Increased Losses Due to Sluggish Property Deliveries

China's Kaisa Faces Financial Challenges

China's Kaisa is grappling with a forecasted increase in net losses for the first half of the year, significantly influenced by sluggish property deliveries. This development showcases the broader issues plaguing the real estate sector, a critical component of the country's economy.

Ongoing Market Declines

Despite the government's efforts to stabilize the market, the housing sales have experienced a steep decline. In 2023, housing sales fell by 6.5% compared to the previous year and plummeted 35.9% from the peak levels seen in 2021.

Impact on Developers

The slower property deliveries are further intensifying Kaisa's financial woes, reinforcing concerns about the sustainability of many property developers facing similar challenges.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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