China Vanke, the largest real estate in China by market capitalisation saw its April sales jump by 66 percent compared to 2012, despite the latest government attempts to fight price increases.
Shenzhen-based Vanke achieved sales of RMB 12.38 billion yuan during April, which marked a 66 percent increase over the same period a year earlier, according to Dow Jones Newswires estimates. However, despite the annual increase, April’s figures still constituted a 19 per cent drop from its total during March. The developer attributed the month on month shift to a seasonal change in demand.
In a filing to the Shenzhen Stock Exchange, the company said sales in the first four months of the year totaled 56.02 billion yuan.
In terms of floor area, Vanke said it had sold 1.11 million square meters in April, down from 1.27 million square meters in March, but up from 767,000 square meters in April last year.
In a statement cited in the Wall Street Journal, Jinsong Du, an analyst at Credit Suisse said of Vanke’s sales, “This is within expectations and the decline is due more to seasonal factors rather than policy.”
In March, China’s State Council, or cabinet, ordered local governments to strictly enforce a 20% tax on profits from resales and threatened to use other market curbs to keep prices from mounting higher.
While Vanke’s figures are still strong, sales in the broader market have taken a bigger dip.
According to a survey of China residential real estate prices released by the China Real Estate Index System on Monday, the volume of housing transactions in 36 out of the 43 cities covered in a market survey were down in April from March.