Property sales are slowing and prices are starting to fall while funding for property developers is highly constrained by policy restrictions. Larger developers continue to report excellent results, but at the cost of smaller competitors. Deteriorating financing conditions onshore caused Chinese property developers to double their dollar bond issuance in the offshore market in January and February, before market sentiment softened and issuance dropped in March. Falling prices, sales, and land transactions point to weaker property sector activity and overall construction growth in the economy in 2018.
