Chinese real estate companies have cut back their sale growth targets for 2019, with around 70% pitching them at under 20% in the first quarter.
Data from CRIC (克而瑞研究中心) and Fangchan.com indicates that 38 out of 40 real estate enterprises that have directly or indirectly released their 2019 sales targets have set them at under 30%.
25 out of the 40 have set 2019 sales growth targets at under 20%, for an average targeted growth rate of just 18.36%.
Yanlord Land Group (仁恒置地) set the highest sales target of 50 billion yuan, for targeted growth of 65.07%.
In sharp contrast The Wharf (Holdings) has set its sales target at 18 billion yuan, for a decline of 21.1% compared to a sales volume of 22.815 billion yuan in 2018.
Beijing Capital (首创置业) has dialled back its 2019 sales target to 80 billion yuan, while Yuexiu Property (越秀地产) its targeting growth of 17.68% and Zhonghai Real Estate (中海地产) growth of 16.18%.
The conservative sales targets arrive despite a “mini-spring” for the property markets of some Chinese cities, roughly two years following the launch of municipal real estate control policies around the country.
Domestic analysts say that “stable land prices, stable housing prices abad stable expectations,” will remain the key themes for Chinese real estate policy in 2019, prompting property enterprises to remain conservative in their estimates.