In addition, Country Garden Holdings warned that the problems in China’s real estate sector are not over. “It has not yet reached its lowest point,” said financial director Wu Bijun. “Real estate sales have not yet stabilized.” He expects further consolidations in the sector, with only the strongest surviving. The chairman believes that the situation should be normalized by the middle of next year.
The real estate market in China has already had a few difficult years. Credit markets tightened and many projects were halted due to a lack of liquidity, affecting the average Chinese’s confidence in buying a home.
Real estate has been an important growth engine for the Chinese economy for many years.