The decline in China home sales increased in November as buyers were still wary about the turmoil in China’s real estate market.

According to preliminary data released by China Real Estate Information Thursday (30 Nov), the value of new home purchases amongst the 100 largest real estate companies dropped 29.6 percent from a previous year to 390.19 trillion yuan (73.3 billion S$).

This follows a 27.5% decline in October.

Sales fell by 4.1 percent from the previous month. According to the report, sales for the top 100 developers are expected to drop 15 percent by 2022.

In order to stabilize the real estate market in the country, authorities have implemented a variety of policies that aim to lower downpayments and loosen restrictions on buying.

Pinetree Hill

The government has made it clear that there is a greater urgency to stop the spiral downward in the real estate sector, which could derail growth and threaten financial stability.

People familiar with the matter said that authorities have proposed a list of 50 developers who are eligible for bank assistance. They also considered a plan which would allow banks to provide them with unsecured loans.

The task of stabilizing the market is still difficult in the face of a general decline. The buyers are still on the sidelines due to construction delays, price drops and defaults.