Contracted sales dropped 59% from a year earlier to ¥2.26 billion (US$309 million), following a 51% year-on-year decline in December, according to Bloomberg calculations based on corporate filings.

Country Garden’s slide in home sales substantially surpasses the 3.2% posted by the 100 biggest real estate companies tracked by China Real Estate Information Corp.

The market is dented by weak domestic demand and a worsening job market.

Despite government support, many buyers prefer second-hand homes due to concerns that developers will still struggle to finish construction on presold projects.

That’s adding to the woes of Country Garden, which is counting on a turnaround in sales to reassure debt holders and fight off liquidation.

The developer has yet to secure support from a key bondholder group over restructuring terms unveiled in early January, while it reached an understanding with a coordination committee comprising seven banks.

Country Garden said last month that it expects to reach an agreement with creditors on its debt plan by the end of February.

A Hong Kong court delayed a hearing on a liquidation petition to May.

The company’s contracted sales this year could fall to levels seen in 2012 and 2013, Bloomberg Intelligence analysts Daniel Fan and Hui Yen Tay wrote in a recent note.

“While it made a “huge impairment provision” when posting a record loss of ¥178 billion in 2023, further impairment is possible as it has only written down about 10.9% of its inventory,” they said.