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Shimao is latest developer to see sales rise since China’s property rescue package

  • Shimao follows China Vanke and Country Garden in reporting higher sales in May, after Beijing’s intervention in the market

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In the first five months of the year, Shimao shifted 13.78 billion yuan worth of properties, a 42 per cent slump from the same period of 2023. Photo: Bloomberg
Cheryl Arcibal
Shimao Group Holdings, one of several mainland Chinese developers facing liquidation suits for failing to repay debts, has become the latest to report higher property sales aided by Beijing’s stimulus package aimed at reviving its crisis-hit real estate sector.
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The Shanghai-based company said sales in May came to 2.92 billion yuan (US$402 million) worth of properties covering a total area of 229,177 square metres (2.47 million square feet), in a filing with the Hong Kong stock exchange on Friday.

That was about 12 per cent higher than the 2.61 billion yuan of properties spanning 203,099 sq m that Shimao recorded in April. Compared to May last year, however, sales fell by 27 per cent.

In the first five months of the year, Shimao shifted 13.78 billion yuan worth of properties, a 42 per cent slump from the 23.86 billion yuan of sales it reported in the same period of 2023.

Lat month the Chinese government launched a rescue package for the property segment with measures such that included a 300 billion yuan relending facility and cuts in mortgage rates.

10:45

Chinese investors offloading overseas properties

Chinese investors offloading overseas properties
Besides Shimao, China Vanke and Country Garden, two of China’s biggest home builders, also saw their sales increase, by about 11 per cent, in May.
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