By Benjamin Chow on December 7th, 2021
Early in 2020, most of the biggest real estate developers in China reacted to the breakout of the pandemic by scaling back their land-banking activities. In H1 2021, those with healthier balance sheets resumed their land acquisitions. Some, like China Poly and Sunac, even exceeded their historical spending.
But the trend wasn’t V-shaped for all the developers. Longfor Properties, for example, has been building up its apartment portfolio while scaling back land-banking. As for Evergrande, the developer was one of the few which bucked the trend in the first half of 2020, spending more than $9 billion which made it the biggest land acquirer in the period. After the Chinese government introduced the “three red lines” policy to rein in heavily indebted developers, that amount dwindled to less than a quarter of a billion dollars in the first half of 2021.
© Real Capital Analytics
A version of this article first appeared in the Q3 2021 edition of Asia Pacific Capital Trends. Clients of Real Capital Analytics <<click here>> to download this edition from the RCA website.
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