Fitch: Environment for Chinese property developers to remain challenging

The US-based global rating agency, Fitch Ratings, offers its downbeat view on the Chinese property sector for the first of the next year.

Key takeaways

“Tight liquidity and credit polarisation persist for China property.”

“Expects an increase in credit polarisation of Chinese developers & sector consolidation to expedite a decline in annual property sales volumes.”

“Operating environment for Chinese developers likely to remain challenging, with a meaningful recovery of funding likely to take place towards H2 2022. “

“Expect 10%-15% year-on-year decline in China property annual sales volumes, with an average selling price decline of around 5%.”

Read: China property market to keep cooling into H1 2022 on tight curbs – Reuters poll