Coronavirus negative impact on the sales of real estate in China

an Outbreak of coronavirus in China will put pressure on real estate sales in the country in the first quarter of 2020, although the majority of Fitch-rated developers are not too dependent on the work in Wuhan or Hubei province, said Moody’s.

“We expect real estate sales in China in the coming months will be under pressure, as some property sales are currently closed and travel restrictions and General safety precautions do not allow many people to move as usual,” said senior Vice President of Moody’s kaven Tsang.

the Agency added that the impact of the virus on the real estate market to some extent is constrained by the traditionally low sales activity and construction in the first quarter.

Moody’s expects a slight decline in sales in China throughout 2020, although initially predicted stable growth. The Agency does not preclude the emergence of financial problems among developers of low liquidity and high demand for refinancing debt.

This option is, according to the Agency, it is possible, if the flash and the associated challenges will continue over the next three to six months.

the Chinese Authorities on 31 December 2019 was announced by the world health organization (who) about the outbreak of an unknown pneumonia in Wuhan in the Central part of the country. Experts identified the causative agent, the 2019 coronavirus-nCoV.

the Number of people infected with coronavirus in China exceeded 20.4 thousand people died 425. Nearly 150 people got sick out of China, one of them died. The who declared the outbreak an emergency situation of international importance.