Wednesday, August 20, 2014

Increase in real estate investment slows again.

The growth of China’s real estate investment continued to slow in July, latest data from the National Bureau of Statistics showed yesterday.
The bureau said property investment rose 13.7 percent year on year in the first seven months to 5.04 trillion yuan (US$819 billion), 0.4 percentage points down from the first half of this year and 1 percentage point down from the January-May period.
The investment in residential properties, which accounted for 68.2 percent of the total, rose 13.3 percent year on year, compared with a 13.7 percent growth for the first six months of 2014.
The slower growth accompanied a faster fall in area and volume of property sales.
In the first seven months, 564.8 million square meters were sold, down 7.6 percent year on year. The drop was 1.6 percentage points steeper than the decline seen in the first half of the year.
Property sales volume fell 8.2 percent on year during this period, compared with a drop of 6.7 percent in the January-June period.
The property development climate index compiled by the bureau fell slightly by 0.02 points from June to 94.82 points in July.
China’s property sector has been cooling since the start of the year, with the growth of key indicators such as property investment slowing for six straight months.
New home prices in 55 of an official sample of 70 major cities dropped month on month in June, compared with 35 in May. New house prices fell in first-tier cities Shanghai, Guangzhou and Tianjin, but not in Beijing.