China’s private builders face $553 billion gap to complete homes
Hindustan Times-- Chinese private developers face a $553 billion funding gap to complete pre-sold homes, adding to the woes of an industry that has yet to bottom out, according to a research report by Goldman Sachs Group Inc. Chinese private developers face a $553 billion funding gap to complete pre-sold homes Credit support from banks — which totaled 469 billion yuan as of the end of March — “appears well below the amount needed for securing home completions,” analysts led by Lisheng Wang wrote in a report released Sunday. As China’s real estate crisis continues, the impact of property easing measures from last year are fading in the new homes market, according to the report. To improve the situation, the government needs to boost developer funding conditions and bring housing demand to “normal levels,” the analysts said. However, Goldman’s calculations show that large-scale government plans in those three areas will incur “substantial costs,” well above the funding arrangements available thus far.
History of this topic
Discover Related
)
)
)
)
