What’s new: Chinese real estate giants are unlikely to meet their annual sales targets as the industry is rocked by the crackdown and crisis, analysts said, as many are reporting double-digit declines in the crucial fourth quarter .

About half of the top 100 real estate companies in the country have more than 30% of their sales quotas for the last quarter, according to a new study by real estate consultancy China Real Estate Information Corp.

In an ordinary year, that would be a modest goal – developers often make between 35% and 40% of their sales in the last quarter, a marketing director at a listed real estate company in Hong Kong told Caixin. But in September, when sales often peak, many companies saw a decline, which bodes ill for the near future.

Details: In September, less than a fifth of the top 100 companies were on track to meet their annual target, with Dafa Properties Group Ltd, listed in Hong Kong. and Greentown China Holdings Ltd., Beijing Capital Development Co. Ltd., listed in Shanghai. (600376.SH) and Gemdale Corp. (600383.SH), and Hangzhou Binjiang Real Estate Group Co. Ltd., listed in Shenzhen. (002244.SZ) meeting more than 80% of their annual sales quotas.

Nine of the 23 companies that have disclosed September sales so far have reported a drop of more than 30%, including Kaisa Group Holdings Ltd, listed in Hong Kong. and Sunshine 100 China Holdings Ltd., and Radiance Holdings Group Co. Ltd. reported reductions of over 60%.

Background: The slowdown in residential real estate in China is worsening, with the tightening regulation towards prices and an escalation of the crisis triggered by the giant’s debt problems Evergrande Group in China.

In August, China’s home sales by value fell 20%, the biggest drop since the pandemic began in early 2020, according to Bloomberg calculations.

Quick Takes are condensed versions of stories related to China for quick news that you can use.

Contact reporter Manyun Zou ([email protected]) and editor Joshua Dummer ([email protected])

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