State Developers Shine in a Challenging Market
China Overseas Land & Investment (COLI, 00688.HK) reported on August 6 that its cumulative contracted sales reached 149.47 billion yuan for the first seven months of 2026, up 13.2% year-on-year — a performance that underscores the growing gap between state-backed developers and their private peers as the property sector's structural adjustment deepens.
July Alone: Strong Momentum
For July 2026 alone, COLI recorded contracted sales of 15.119 billion yuan, up a robust 27.6% year-on-year, though contracted floor area fell 16.6% year-on-year to 550,600 sqm — indicating a shift toward higher-value, higher-priced units in prime urban locations rather than volume-driven growth.
January–July Summary
| Metric | Jan–Jul 2026 | YoY Change |
|---|---|---|
| Contracted sales (value) | 149.47 billion yuan | +13.2% |
| Contracted floor area | 5.0534 million sqm | −12.6% |
| July contracted sales | 15.119 billion yuan | +27.6% |
| July contracted floor area | 550,600 sqm | −16.6% |
Why State Developers Are Outperforming
State-owned developers benefit from stronger access to bank financing, government-backed land acquisition opportunities, and implicit policy support through the property financing coordination ('white list') mechanism. In contrast, private developers have faced tight credit conditions and cautious buyer sentiment, resulting in a widening performance gap across the sector.
Implications for the Market
COLI's premium-location strategy — selling fewer but higher-priced units — mirrors a broader industry shift from scale expansion to quality-focused development, aligned with Beijing's "new development model" for real estate that prioritises completion and delivery over new construction starts.