Harbin among first Chinese cities to announce steps to help property developers

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BEIJING, Oct 11 (Businesshala) – Harbin has become one of the first cities in China to announce measures to support property developers and their projects, deepening into property giant China Evergrande Group (3333.HK). Debt has been shaken by the crisis.

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In a statement on its website on Sunday, the government of Harbin, the capital of northeastern Heilongjiang province, said developers should withdraw part of their presale funds held in government escrow accounts to relieve pressure on their cashflows.

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Developers with good credit profiles should also be allowed to resume pre-sale activities, the statement said.

Yan Yujin, director of Shanghai-based e-house China Research & Development, said, “It is expected that other cities will also follow suit, especially under great pressure from high inventories, including some tier-three and four cities in the central and western regions.” Are included.” Development Institute.

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Even before Evergrande’s debt crisis hit the center stage, the property sector – which accounts for nearly a quarter of China’s GDP – was hit by tighter lending caps that cut cash flow as well as developers end construction. The ability to do and raise funds for the new is damaged. projects.

Harbin also said it would subsidize up to 100,000 yuan ($15,500) to gifted residents with the skills and qualifications to buy a home for the first time.

Property investment and sales have declined while new home prices have slowed growth.

In Zhangjiakou, a low-lying city in Hebei province north of Beijing, some developers have begun lowering prices to boost sales and increase cash flow.

($1 = 6.4370 Chinese Yuan)

Reporting by Liangping Gao and Ryan Wu; Editing by Edwina Gibbs

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