Chinese Developers See Sales Boost in September: Is the Growth Sustainable Amid Government Stimulus Uncertainty?

Sales for leading Chinese developers saw a minor increase in September, following support from Beijing. However, experts are questioning the durability of these gains due to the unclear future plans for government stimulus.

However, experts questioned whether the increases could be maintained, given the unclear nature of the government's future stimulus strategies.

In the meantime, China Vanke reported new residential sales totaling 10 billion yuan during the week-long "golden week" vacation. Meanwhile, Country Garden revealed a 34% increase in potential clients showing interest by providing a deposit for a project, compared to a similar week-long break in May.

The increase in September sales is primarily due to a low benchmark from the previous year, and the numbers don't fully capture the overall situation," stated Raymond Cheng, a Managing Director at CGS International Securities based in Hong Kong.

"However, we are noticing a significant resurgence in sales during October, particularly throughout the golden week. This is anticipated to result in the first annual sales growth this year for several prominent developers."

He also anticipates a rebound in total sales for the last quarter as the impact of the stimulus slowly starts to become evident.