(Yicai) July 2 -- The decline in sales at China’s leading real estate developers slowed in the first half of this year, with the property market remaining sluggish overall despite signs of a recovery in key cities.

Sales at the top 100 builders 13.6 percent to CNY1.6 trillion (USD233.8 billion) in the six months ended June 30 from a year earlier, according to data released yesterday by the China Index Academy, an industry think tank. The rate of decline decelerated from 14.9 percent in the January to May period after slowing for the fourth consecutive month in June.

Only three developers had sales of more than CNY100 billion (USD14.7 billion) in the period, compared with four during the same period last year, with Poly Developments and Holdings Group at CNY135.1 billion, China Overseas Land & Investment at CNY134.3 billion, and China Resources Land at CNY116.5 billion.

At CNY96.1 billion (USD14.2 billion) and CNY94.7 billion, respectively, China Merchants Shekou Industrial Zone Holdings and Greentown China Holdings rounded out the top five. C&D Real Estate raked in CNY63.8 billion to rank sixth, while China Vanke dropped to No. 10 with CNY35 billion.

Three companies had sales in excess of CNY100 billion, one fewer than a year earlier, while 34 had sales of over CNY10 billion, a decrease of 12 from a year ago.

Sales at Beijing Urban Construction Group and Lianfa Group grew more than 20 percent year on year, while those at China Overseas Land & Investment, China Merchants Shekou, and China Jinmao Holdings Group climbed over 10 percent. A common characteristic of these firms is that their projects are largely concentrated in core cities, particularly first-tier cities, which has underpinned their ability to clear inventory.

First-tier cities accounted for almost 46 percent of revenue at the top 20 builders, up from about 40 percent a year earlier, while second-tier cities made up about nearly 45 percent, the data showed, highlighting that key cities have become the main income source.

Poly Developments, China Resources Land, China Merchants Shekou, and six others in the leading 20 reported that revenue from first-tier cities accounted for more than half of the total.

Easing property market policies have supported a noticeable recovery in demand for high-end housing in core cities. In response, leading developers have shifted land purchases toward prime locations in first-tier cities, increasing both their exposure to these markets and the share of revenue generated from premium projects, the China Index Academy said.

High-end residential units larger than 200 square meters accounted for 25 percent of revenue among the top 20 builders, up from about 14 percent a year ago. In contrast, standard units of 90 sqm to 140 sqm made up 41 percent of sales, down from 46 percent, although they remained the largest single product category.

The think tank expects the year-on-year decline in new home sales to slow further this half, supported by the low base of comparison from a year earlier. While rising supply and demand for high-end properties is adding momentum to the recovery, overall market stabilization still needs time, it said.

Editors: Tang Shihua, Martin Kadiev