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China’s embattled property industry will rebound in second half of 2024, says Zhang Yadong, chairman of developer Greentown
- Zhang Yadong, chairman of Greentown China, says an economic recovery will help trigger a turnaround in the second half of next year
- The sector will report total sales of 12 trillion yuan this year, down 11 per cent from 2022, Zhang estimated
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Daniel Renin Shanghai
Chinese developer Greentown China Holdings, one of the few bright spots in the mainland’s beleaguered real estate sector, has made an upbeat forecast that home construction and sales will rebound in the second half of 2024.
Zhang Yadong, chairman of the Hangzhou-based company, told reporters in a media briefing on Tuesday that an expected economic recovery and the release of pent-up housing demand would trigger a turnaround next year.
Greentown itself will focus on top-tier cities for profit growth.
“Property is a gargantuan sector which cannot be replaced by any other industry,” he said. “The downturn may extend into the first half of 2024, but we foresee a rebound in the second half when the central government’s relief measures takes effect.”
On Tuesday, Greentown, which is 24.6 per cent owned by Hong Kong developer Wharf Holdings, won tenders to buy four land parcels worth 7.4 billion yuan (US$1.03 billion) in Hangzhou, the capital of East China’s Zhejiang province.
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“We believe that cash-rich people remain keen to own high-quality homes,” Zhang said. “Greentown will keep its focus on top-tier cities and we will continue to build the best properties for people.”
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