Country Garden's struggles reflect the pressing issues in China's real estate market, making recovery a daunting task.
Country Garden's plummeting sales reflect the tough realities facing China's real estate sector.
Country Garden Holdings Co., one of China's leading real estate developers, continues to face significant challenges. In March 2025, the company's sales further decreased by 25.3% compared to the same month last year, totaling only 3.2 billion yuan, roughly equivalent to 437 million US dollars. This trend highlights the difficult position of the company within the broader context of the national housing market.
A comparison of Country Garden's current sales figures with overall industry data reveals that the company is faring worse than its peers in the real estate sector.
In February of this year, the company's contracted sales had already dropped by 38% year-over-year;
In contrast, new home sales among the top 100 real estate developers in China fell by just 11% in March.
These figures indicate a significant deterioration in Country Garden's situation amid economic fluctuations and market volatility.
The total sales for Country Garden during the first quarter of this year amounted to just 7.8 billion yuan, a far cry from its historical performance. This drop intensifies concerns regarding the company’s financial health and its ability to meet obligations and complete planned projects.
Sales decline in March:
25.3% compared to March 2024;
3.2 billion yuan (437 million dollars).
Previous sales figures:
Sales in February decreased by 38%;
Total sales for Q1 reached only 7.8 billion yuan.
Several factors contribute to Country Garden's challenging position:
Economic conditions: A slowdown in China's economic growth and negative responses to government measures aimed at stabilizing the market.
Increased competition and reduced demand: Growing competition from other developers and an overall decline in consumer interest in new housing.
Debt burden: Rising debt levels and complicated financial situations place additional pressure on the company.
The decline in sales for Country Garden Holdings presents new challenges for the company and the industry as a whole. An effective strategy for crisis recovery and ongoing risk management will be essential for restoring financial stability. Increased scrutiny of the situation surrounding Country Garden may particularly rise among investors and analysts seeking to understand what changes are expected in China's real estate market in the coming years. Given the current trends, further adaptation by companies involved in residential construction appears crucial.
