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Moody's Expects Home Prices in all CN Cities to Keep Falling in Next 6-12 Mths
Recommend 52 Positive 90 Negative 59 |
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Moody's noted that sales of Chinese property developers fell 30.7% YoY in 1Q24, higher than the 14.3% decline in 4Q23, signalling weak market sentiment and a higher base in 1Q23. The rating agency expected property sales to continue to fall throughout the year due to factors such as the slowing recovery of the mainland economy and weak demand. Moody's also commented that the downtrend in property prices worsened in March, with first- and second-tier property prices falling by 1.5% and 1.9% YoY respectively, a wider decline than in February. Property prices in cities other than the first- and second-tier cities plummeted by 3.5%, and property prices in all mainland cities are expected to continue to weaken in the next 6 to 12 months. Mainland property companies issued RMB3.5 billion of onshore bonds in April, down from RMB4 billion in March. In addition, no offshore bonds were issued in April. Moody's predicted weaker Chinese property enterprises to continue to face refinancing and liquidity risks. The liquidity stress sub-indicator for high-yield mainland property firms declined to 53% from 60% in February, which was associated with the exit of one of the less liquid property companies from the rating coverage. AAStocks Financial News |
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