China Overseas Sales Decline as Land Acquisitions Slow

China Overseas Land & Investment (COLI) experienced a 4.6% year-on-year decrease in contracted property sales in October 2026, signaling continued pressure in the Chinese property market despite overall gains for the year to date. This slowdown, coupled with a notable deceleration in land acquisition, suggests a more cautious approach by the company amid broader economic uncertainties.

October sales totaled RMB17.805 billion, with a corresponding 19.9% decrease in sales area to 698,300 square meters. However, accumulated sales from January to October reached RMB198.840 billion – a 5.1% year-on-year increase – driven by earlier performance. This indicates that while recent momentum has waned, the company still benefits from sales secured in the first part of the year. Crucially, the accumulated sales area fell by 19.3% over the same period, highlighting a shift toward selling higher-value properties or a decline in overall market demand.

A more significant shift appears to be occurring in land acquisition. COLI did not acquire any new land parcels in October, and the aggregate attributable gross floor area of new land holdings from January to October was approximately 2,724,133.90 square meters. While substantial, this represents a potential slowdown in expansion plans, especially given the company’s prior activity. COGO, a major associate, acquired only one land parcel in Lanzhou, Gansu Province, during the month, indicating a broader trend of restraint.

The slowing land acquisition is occurring within a property sector facing significant state intervention, as evidenced by recent efforts to avert a wider economic slowdown. Combined with Beijing’s financial controls, this suggests COLI is prioritizing capital preservation and cautious expansion over aggressive growth. The discrepancy between the increase in accumulated sales value and the decrease in sales area reinforces this shift, positioning COLI to maximize returns on existing assets rather than expand its portfolio rapidly. The company's future trajectory will depend on its ability to navigate these evolving market dynamics and capitalize on existing land holdings.