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Chinese Developers May Remain Cautious About New Investment In 2022

CHINA PRESS
MNI (Singapore)

Chinese property developers will remain cautious about expanding investment in 2022, as it would take three-to-six months for investment after the RRR cuts and other easing signals for real estate financing released at end-2021, said Quanshang China, a social media outlet under the Securities Times. The total land purchase by top 100 developers dropped by 21.5% y/y in 2021, with the ratio of land purchase to sales dropping to a record low in the past five years, the newspaper said citing the China Index Academy. Developers were facing greater debt repayment and cash flow pressure since end-Q3 amid successive financial regulation, and most developers failed to acquire any land in Q4 last year, the newspaper said.

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