China govt land sales downcast for fifth month within cash crunch
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The Chinese government’s revenue from land sales fell for a fifth straight month in November as a liquidity crunch engulfed the country’s most indebted developers amid persistent market headwinds.
In November, the value of land sales nationwide sank 9.90% from a year earlier, although that was less than the 13.14% annual decline in October, according to Reuters calculations based on finance ministry data.
Beijing’s efforts to reduce leverage across the sector, including limits on how much developers can borrow, have resulted in a financial crunch among real estate firms including China Evergrande Group this year.
As a result, the desire of cash- strapped private developers for urban land auctions has been lacking, forcing local governments to scrabble for additional sources of revenue to fund investment and support the economy.
examination of public announcements on the sales, private developers bought at least 140.6 billion yuan of land in the second round of land auctions this year, which ended in November, down from 553.1 billion yuan in the first round in March-June.
Official data released on Wednesday indicated that China’s property market faced additional headwinds in November, with housing prices, sales, investment, and construction all falling, pulled down by sluggish demand and a liquidity shortage among developers.
Story by : Norvisi Mawunyegah