(Reuters) -Chinese language property developer Kaisa Group stated on Thursday it expects to report a much bigger web loss for the primary half of the yr, harm by a decline in property deliveries and better impairment provisions put aside for initiatives.
China’s property sector, a key driver of the economic system, has been in turmoil since 2021, with housing gross sales plummeting 6.5% in 2023 from the earlier yr and 35.9% from its 2021 peak, following a regulatory crackdown on excessive leverage amongst builders that sparked a liquidity disaster.
The slowdown within the property market has led to decreased real-estate undertaking deliveries, which in flip has resulted in decrease recognised revenues for builders like Kaisa.
On the similar time, many builders are battling unsold stock, delayed initiatives, and declining property values, implying a have to recognise larger impairment losses on property initiatives.
Earlier this month, friends together with Agile Group, Redsun Properties and Sunac China all flagged larger or related losses for the half yr.
Kaisa expects a web lack of 8.8 billion yuan to 9.8 billion yuan ($1.23 billion-$1.37 billion) for the half yr ended June 30. It had reported a web lack of 6.6 billion yuan for the year-earlier interval.
($1 = 7.1344 )
