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China’s real estate investment slid 7.9% year over year to 5.86 trillion yuan in the first half the year, expanding by 0.7 percentage point from the first five months, according to the data released by the National Bureau of Statistics on Monday.
In June alone, real estate investment fell 20.6% on year, narrowing by 0.9 percentage point from May and marking the second straight month with a decline of more than 20%, showed calculations based on NBS data.
Property investment will remain relatively low but it will gradually return to a reasonable level along with market adjustments, said Fu Linghui, an NBS spokesperson.”Along with the economic recovery and policies that promote the sector’s healthy development, the property market will stabilize,” he said.
Given the government’s efforts ensure delivery of sold but unfinished properties, the real estate sector continues to see a pattern of high completion, weak sales and low constructions starts.
New construction starts of property projects, measured by floor area, declined by 24.9% from a year earlier, showed the data. For June alone, new construction starts tumbled 31.3% from a year earlier, faster than the drop in May, showed calculations based on NBS data.
Real estate construction completions increased by 19%, and completions of residential projects rose by 18.5%, according to the data.
Property developers’ financing totaled 6.88 trillion yuan in the first half, falling by 9.8% from a year earlier, showed the data. In breakdown, domestic loans fell 11.1% to 869.1 billion yuan, foreign capital tumbled 49.1% to 2.8 billion yuan, self-raised funding slid 23.4% to 2.06 trillion yuan; advance payment fell 0.9% to 2.43 trillion yuan and home mortgage loans rose 2.7% to 1.24 trillion yuan, according to the NBS.
For June alone, real estate developers’ financing slid 9.9% from a year earlier, expanding from the 9.1% drop in May, showed calculations based on NBS data.
China’s property sales, by floor area fell by 5.3% year over year in Jan – Jun and property sales, measured by value, rose by 1.1%, showed the data. For June alone, the two figures declined by 28.1% and 25%, respectively, expanding by 8.4 percentage points and 20.1 percentage points from the previous month, showed calculations based on NBS data.
Overall, the China Real Estate Climate Index compiled by the NBS hit 94.06 in June, marking the lowest level since December 2016 and sliding from 94.55 in the previous month.
