China Home Sales Plunged in February as Outbreak Intensified

(Bloomberg) -- Key homebuilders in China saw sales slump last month as the coronavirus outbreak deepened.

Contracted sales plunged 33% on average versus February 2019 across 30 developers tracked by Bloomberg. The contraction was the steepest in at least six years and came despite property firms’ best efforts to migrate sales online.

Among the worst hit were China Jinmao Holdings Group Ltd., down 69%, Greentown China Holdings Ltd., down 67%, and China Aoyuan Property Group Ltd., down 65%.

Read more: Over 100 Builders Go Bust in China as Virus Strains Deepen

The only company bucking the trend was China Evergrande Group, whose February sales jumped 108%. That suggests an aggressive marketing campaign paid off. The Shenzhen-based developer was offering discounts of up to 25% on many of its projects, get-out clauses for buyers and price-match promises.

A lackluster February was inevitable as over 100 cities went into lockdown to prevent the new coronavirus from spreading. Developers closed showrooms and as of the start of this month, many on-site sales rooms remained out of action.

February home-price data for 70 major cities across China is due Monday. Home prices rose at the slowest pace in almost two years in January and analysts are watching closely to see if the gauge will show a decline in home s.

There are also concerns about how fast residential apartment sales can pick up in the coming months. China is starting to get back to work but many factories aren’t at full capacity due to clogged logistics systems, a lack of staff or limited supplies and raw materials.

Government controls and a fear of going outside have curtailed consumer spending and dented confidence. Construction delays due to the lack of migrant workers may also slow sales.

©2020 Bloomberg L.P.