China Overseas Sales Decline Despite Overall Growth

China Overseas Land & Investment Limited experienced a substantial contraction in September property sales, with contracted sales falling 22.8% year-on-year to approximately RMB15.581 billion. This decline was coupled with a more significant 38.9% decrease in sales area, reaching roughly 558,700 square meters.

Despite the weak September performance, the company demonstrated overall growth in the first nine months of 2026. Accumulated contracted property sales rose 6.2% year-on-year to RMB181.035 billion, though this growth was not matched in area, which decreased by 19.2% to approximately 6,123,700 square meters. Approximately RMB10.396 billion in subscribed sales are expected to convert to contracted sales in the coming months, offering a potential buffer.

The company continued to invest in land reserves, acquiring four land parcels in Xi’an, Shenyang, Shenzhen, and Shanghai during September, with an attributable gross floor area of approximately 343,614.40 square meters. The total attributable land premium for these acquisitions amounted to RMB7,783.12 million. Year-to-date, the group's aggregate attributable GFA of new land holdings reached approximately 2,724,133.90 square meters, requiring a total attributable land premium of RMB56,146.60 million.

While the nine-month sales figures show a moderate increase, the sharp decline in September sales raises concerns about near-term momentum. The company’s substantial land acquisitions, while positioning it for future development, also represent a significant capital outlay at a time when broader macroeconomic conditions in China are facing headwinds and the property sector remains under pressure. The discrepancy between sales growth and area contraction suggests a potential shift towards higher-value properties or pricing strategies, but requires further analysis as more detailed financial data becomes available.