China’s property sector in peril, despite planned bailout

Property sales in China could fall by one-third this year, despite government attempts to bolster the sector. Experts at rating agency S&P have concluded that the fall in residential sales will be twice as bad as they had originally forecast for this year. “S&P Global Ratings now expects national property sales will fall 28%-33% this year, almost double the drop of our prior forecast,” said a note issued on Tuesday. The news comes amid reports that China’s government is preparing a bailout of the sector that could cost $44bn, as buyers of apartments in more than 100 cities had banded together to withhold payments on unfinished homes. “This boycott on payments could easily spread to other developers, in our view,” S&P said. There is also nervousness in the sector as Evergrande prepares to reveal a long-awaited restructuring plan, promised by the end of July. The Guardian