China’s Ailing Property Market Faces Key Test Over Golden Week

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Chinese developers are counting on the upcoming Golden Week holiday period to spark a long-awaited revival in home sales, in the first key test of whether recent policy support is enough to arrest the slump.

The eight-day national holiday starting Friday is the centerpoint of the industry’s September-October busy season. The stakes are higher than ever this year, as the housing slowdown weighs on China’s economic recovery and developers that are struggling to refinance rely on cash from sales to meet debt obligations.

Thirteen developers from Harbin, the capital of China’s northernmost province, went to the eastern city of Nanjing to promote their 21 projects earlier this month, hoping that buyers fond of traveling would consider them as holiday residences. Guangzhou made such a move in some urban areas last week, marking one of the most significant steps taken in a tier-1 city. Beijing and Shanghai still restrict non-locals from buying property and place limits on how many units each household can own.

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