![]() ![]() Currently, it is at 99.6%, down 1.9 points year over year. 99.6% Sale-To-List-Price: The number of buyers paying above the asking price has decreased.The median time to contract increased to 24 days, 7 days up YoY. 50% Longer Median Days : As buyers face affordability issues, homes are staying on the market longer.5.2% Decline in Median Sale Price: The median sale price has decreased by 5.2% YoY.Mortgage Rates at 6.79%: Mortgage interest rates are slowly coming down, currently standing at 6.79%.The stock plunged 79 percent.The Colorado real estate market shows signs of declining buyer demand. ![]() Trading in its shares resumed in Hong Kong on Monday, after a 17-month suspension. 17, Evergrande filed for bankruptcy protection and has signaled that it is close to a deal with some of its biggest creditors. Last year, it said it had finished 300,000 and still had 720,000 more to complete, according to its 2022 results. She sued Evergrande and won, but has no way to get her money because the government is supervising the restructuring of the company, and its first priority has been to make sure Evergrande finishes the apartments it sold. Liao’s business is on the brink of bankruptcy. But the money still came in, she said, until the company defaulted on its debt in 2021. Then, in 2017, it started to give one-year i.o.u.s. Liao, sometime around 2016, Evergrande began to issue i.o.u.s - known in dry financial parlance as commercial acceptance bills - for payment within six months. A tour of a model apartment, often decorated lavishly, sells them on a lifestyle.Īccording to Ms. A miniature model of the residential complex gives a sense of what the complex will look like when it is built. Inside the sales offices, agents dressed in suits typically pitch potential buyers on the bells and whistles. Most companies sold apartments before a project was finished, with customers paying upfront. Han, apartments wouldn’t have been that useful anyway no one is buying them right now.įlashy sales offices have long played a key role in bringing in cash that property developers needed to keep growing. “Such apartments have run out we can’t get them,” said Han Tao, a manager at a landscaping company that is owed $1.4 million from property developers. These days, even bartering is no longer an option. China Evergrande, the behemoth that defaulted on hundreds of billions of dollars of debt in 2021, repaid some of its suppliers with unfinished apartments instead of cash, on the theory the suppliers could sell them to reclaim the money they were owed. They found other ways to compensate suppliers. ![]() It also disclosed that it might have lost as much as $7.6 billion over the first six months of the year.Ĭountry Garden’s swing from success to near failure is deepening fears that an abrupt end is in sight for China’s developers, many of which have been under stress for several years as regulators have tried to restrict their bank financing.Īt first, some developers were able to keep going, even as they failed to make good on their obligations. If it fails to make those payments by early September, when a grace period ends, it will join a long list of private companies that have defaulted. He has received only three-quarters of his usual commission for the last year and says he is still owed nearly $8,000.īut a drop in sales over the past six months has pushed it to the edge, and in August it threw up its hands.Ĭountry Garden skipped two small interest payments on bonds. Liu Yaonan, a real estate agent in Guangdong Province, doesn’t have much confidence that Country Garden will ever pay. “Country Garden, pay back my hard-earned money,” reads another. “It’s shameful to delay wages,” one sign says. ![]() Construction workers are posting protest banners at empty construction sites that have been chained and locked. Lawsuits and complaints to local authorities are piling up. People want their money and are taking action. And that’s a conservative estimate the number is probably larger. Low on the payback priority list for developers but an important part of the housing ecosystem, the group includes painters, cement makers and builders, as well as real estate agents and companies that furnished sales offices.Īs a group, suppliers are waiting on at least $390 billion in payments, according to the research firm Gavekal Research. Small businesses and workers who thrived on the decades-long property boom are no longer getting paid. ![]()
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