Once China’s largest developer, Country Garden is struggling to stay afloat. The company announced a delay in publishing its annual results and a suspension of stock trading due to the restructuring of its massive $194 billion debt.
Catastrophic Sales Slump
Country Garden is reeling under the weight of enormous debt and plummeting property sales. In February, the company’s contracted sales plunged by a record 85%, the largest monthly decline in the past seven years.
Creditors, Please Be Patient!
Despite the debt restructuring challenges, Country Garden is fulfilling its commitments. It urges creditors for patience and emphasizes that it delivered 600,000 housing units in 249 cities across China in 2023. This represents a significant volume and shows that the company is trying to meet market demand despite the crisis.
Real Estate Sector Crisis?
The difficulties faced by Country Garden raise concerns about the stability of China’s real estate sector. The situation is reminiscent of the collapse of Evergrande, another giant in the industry that has filed for bankruptcy. These two companies point to a deeper crisis that threatens the entire Chinese economy.
Beijing Battles Volatile Real Estate Market: Sales Decline Expected
The Chinese real estate market is going through a turbulent period marked by volatility and falling demand. This situation affects investors and homebuyers and raises questions about the future of the sector.
Despite Beijing’s efforts to revive the market, home sales are expected to decline by 5-10% in 2024. This would mean continued pressure on developers and potentially on the entire Chinese economy.
Country Garden: Once China’s Largest Developer
Country Garden is one of the largest real estate developers in China. Founded in 1992, it became the country’s largest developer by sales volume in 2017. Country Garden operates in China and abroad and has over 1,000 projects in 300 cities.
The company focuses on residential real estate development but also has activities in commercial real estate, hotels, and industrial parks. Country Garden is known for its innovative projects and focus on sustainability.
In 2023, Country Garden finds itself in a difficult situation due to its massive debt and declining property sales. The company is trying to restructure its debt and implement measures to revive sales.
Summary:
- Country Garden is one of China’s largest real estate developers.
- Founded in 1992, it became the country’s largest developer by sales volume in 2017.
- Country Garden operates in China and abroad and has over 1,000 projects in 300 cities.
- In 2023, Country Garden finds itself in a difficult situation due to its massive debt and declining property sales.
Photo: Envato
