\n<\/p>\n
(Reuters) -Chinese property developer Kaisa Group said on Thursday it expects to report a bigger net loss for the first half of the year, hurt by a decline in property deliveries and higher impairment provisions set aside for projects.<\/p>\n
China’s property sector, a key driver of the economy, has been in turmoil since 2021, with housing sales plummeting 6.5% in 2023 from the previous year and 35.9% from its 2021 peak, following a regulatory crackdown on high leverage among developers that sparked a liquidity crisis.<\/p>\n
The slowdown in the property market has led to decreased real-estate project deliveries, which in turn has resulted in lower recognised revenues for developers like Kaisa.<\/p>\n
At the same time, many developers are struggling with unsold inventory, delayed projects, and declining property values, implying a need to recognise higher impairment losses on property projects.<\/p>\n
Earlier this month, peers including Agile Group, Redsun Properties and Sunac China all flagged bigger or similar losses for the half year.<\/p>\n
Kaisa expects a net loss of 8.8 billion yuan to 9.8 billion yuan ($1.23 billion-$1.37 billion) for the half year ended June 30. It had reported a net loss of 6.6 billion yuan for the year-earlier period.<\/p>\n
($1 = 7.1344 Chinese yuan)<\/p>\n
(Reporting by Roushni Nair in Bengaluru; Editing by Shilpi Majumdar and Subhranshu Sahu)<\/p>\n<\/div>\n