BEIJING, Feb. 8 (Xinhua) -- Poly Real Estate Group, China's second largest property developer by market value, said Wednesday that its home sales fell 69.35 percent year-on-year to 1.51 billion yuan (239.68 million U.S. dollars) in January.
Transaction area dropped 74.69 percent from one year earlier to 125,000 square meters last month, the developer said in a statement filed to the Shanghai Stock Exchange.
On a monthly basis, the group's home sales slumped 73 percent from December, while sold floor space plunged 76 percent.
Zuo Hongying, an analyst with AJ Securities Co., said that in addition to government tightening measures, the retreat in sales was also a result of seasonal factors, as the Spring Festival fell earlier this year in January, which is usually a slack season for home sales.
To contain runaway home prices, the government has enacted a slew of measures to regulate the sector, including tighter monetary policies, higher down payments, restrictions on second-home purchases and property tax trials, slowing down property-related business activities.
"Housing inventories will continue to rise during the first half of the year, and sales volumes are expected to reach a low," said Sun Jianping, an analyst with Guotai Junan Securities Co.
In a separate statement, the developer said one of its subsidiaries has obtained a plot of land in Wuhan, capital city of central China's Hubei province, at a cost of 2.01 billion yuan.