China Property Market Turmoil: Vanke Faces Interim Loss as Home Sales Collapse
China Vanke's Interim Loss Highlights Property Market Struggles
China Vanke, once China's second-largest home builder, has reported its first interim loss in two decades. The shenzhen-based developer recorded a net loss of 9.85 billion yuan (US$1.4 billion) for the first six months of 2024, a stark contrast to the profit of 9.87 billion yuan from 2023.
The Depth of the China Economy's Property Crisis
- Home sales dropped 37.6% year-on-year, reaching only 127 billion yuan.
- Revenue decreased by 29% year-on-year to 142.8 billion yuan.
- Major developers, including Shimao Group, continue to report widening losses amid a crippling debt crisis.
Despite the implementation of supportive policies, restoring buyer confidence remains a challenge. China’s adoption of the “three red lines” policy has led to significant borrowing restrictions, exacerbating the unsold homes dilemma.
Anticipating future measures, Vanke aims to deliver homes, service debts, and promote high-quality development amidst the turmoil.
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.