BRIEF: Longfor’s January sales continue to fall

Real estate developer Longfor Group Holdings Ltd. (0960.HK) said on Tuesday its contracted sales in January totaled 4.46 billion yuan ($611 million), down 36% year-on-year and a 45% decline month-on-month. Its contract sales attributable to company shareholders totaled 3 billion yuan, down 35% year-on-year and 44% month-on-month.

The declines come as China’s property market continues to be sluggish despite a series of government measures to support the market last year. Many believe the market still has a large oversupply after years of rapid building, and that it will take time to further reduce inventory before prices stabilize.

After opening up 0.4% on Wednesday, Longfor’s shares continued to rise through the day and were up about 5% in afternoon trading. The shares are down about 50% from their high over the past six months.

By Lau Chi Hang

To subscribe to Bamboo Works weekly free newsletter, click  here