China’s property sector struggles, Country Garden to sell $530 mln in assets

China’s property market slump is getting worse as Country Garden, the largest private property developer in China, plans to sell properties in Guangzhou, aiming to raise 3.8 billion yuan ($530 million), Reuters reported on Wednesday.

This move comes in a bid for the company to repay sizeable debt due within the next six months. The company is among a long list of Chinese developers reeling from a cash crunch as the sector plunged into massive debts, and threatens to undermine growth at a time when China can ill afford it.

The selling will include a hotel resort, four office towers, a shopping mall as well as five rental apartment buildings, according to listings dated Jan. 19 on Guangzhou Enterprises Mergers and Acquisitions Services.

The real estate market is expected to reach a staggering value of €124.10tn in 2024, according to data published by German online platform Statista. The residential real estate segment projected market volume of €107.30tn in the same year.