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Realty firms may see revenue loss

By Bi Xiaoning | China Daily | Updated: 2009-02-26 07:53

Realty firms may see revenue loss

The latest figures from 12 listed real estate companies reveal a sharp drop in income from property presales during 2008, indicating a further earnings decline this year.

A practice borrowed from Hong Kong, the presale of apartments under construction has become an established mechanism in the mainland property market to speed up the capital flow of developers.

The advance payments from customers are often liabilities for developers and can be treated as revenue only after the apartments are delivered.

Realty firms may see revenue loss

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