(Yicai Global) June 1 -- New home sales by China’s top 100 developers slumped more than 14 percent last month from April, according to figures from China Real Estate Information, mainly because of weaker buyer sentiment and a lack of active promotions by builders.

The developers sold CNY485.4 billion (USD68.3 billion) of properties in May, CRIC data showed yesterday. The figure rose 6.7 percent from a year earlier, given the low base because of Covid-19 lockdowns.

Only 20 percent of the top 100 builders increased their monthly sales, with nearly half achieving annual growth. About 70 percent of the top 30 had annual sales growth, with China Resources Land, China Merchants Shekou Industrial Zone Holdings, and Binjiang Real Estate Group reporting a more than 50 percent increase.

In the first five months of the year, sales by the top 100 developers rose 9.1 percent from a year earlier, but slowed compared with the first four months.

Poly Developments and Holdings Group continued to rank first with sales of CNY195.6 billion in the January to May period, followed by China Vanke with CNY165.9 billion, and China Overseas Land and Investment with CNY146.3 billion.

At CNY143.5 billion, China Resources Land climbed to fourth place, while Country Garden Holdings fell to fifth. The sixth- to 10th-ranked builders were the same as in the first four months, but Binjiang Real Estate and C&D Real Estate swapped places to ninth and 10th.

June is a key performance month for developers in the first half, the CRIC said. They are expected to step up promotions and offer larger discounts, so this month’s turnover will likely rise from May.

Moreover, the launch of more favorable policies may become a key variable for the market. There is still room to enhance real estate policies in core cities, said Liu Shui, head of business research at the China Index Academy. Sales are expected to rise in June if, together with strong promotions by developers, China also implements new policies to boost market confidence, he added.

Editors: Tang Shihua, Futura Costaglione