China's Land Sales Revenue Continues Downturn in 2024

China witnessed a significant decline in land sales revenue over the first seven months of 2024, with a 22.3% year-on-year drop. Property developers' reduced acquisitions, due to government restrictions on leverage, have exacerbated the slump, impacting local government finances.

China's government posted an extended decline in land sales revenue for the first seven months of 2024, finance ministry data showed on Monday. Revenue from government land sales fell 22.3% year-on-year, compared with an 18.3% drop in the first half of the year.

Land sales, which serve as a crucial indicator of property sector momentum and a key factor in local government finances, have experienced a sharp decline since 2022. Property developers, who were major buyers in China's land market, have scaled back their land acquisitions due to authorities' restrictions on excessive leverage, which has left them financially strained and in debt.