China Developers Face Cash Crunch as Virus Freezes Home Sales
- Builders offer big discounts, get-out clauses to lure buyers
- Housing market was already slowing before virus outbreak
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China’s debt-laden developers are facing a cash-crunch as the coronavirus outbreak brings the property market to its knees.
Most builders have a cash buffer of just three months, according to the China Real Estate Chamber of Commerce, one of the nation’s largest developer associations. With lockdowns and travel restrictions entering their second month in some cities, the clock is starting to tick.