Real es­tate faces un­cer­tainty, ex­perts say

China Daily (USA) - - TOP NEWS - By WANG YIQING wangy­iqing@chi­nadaily.com.cn

Al­though China’s GDP grew by 6.7 per­cent in the third quar­ter, and many macroe­co­nomic in­di­ca­tors in the quar­ter showed bet­ter-thanex­pected signs de­spite a global eco­nomic down­turn, the coun­try’s econ­omy still faces great chal­lenges, es­pe­cially in the real es­tate sec­tor, econ­o­mists said.

The do­mes­tic real es­tate sec­tor, which is re­garded as a sig­nif­i­cant driver of eco­nomic growth this year, faces un­cer­tainty due to tight­ened real es­tate poli­cies that were is­sued re­cently.

In the first three quar­ters, China’s real es­tate in­vest­ment grew by 5.8 per­cent, al­though such in­vest­ment last year grew by just 1 per­cent from Jan­uary to De­cem­ber, ac­cord­ing to Na­tional Bureau of Sta­tis­tics data.

Hous­ing sales reached 8.02 tril­lion yuan ($1.2 tril­lion) from Jan­uary to Septem­ber, a year-on-year in­crease of 41.3 per­cent, the data show.

Fu­eled by easy credit poli­cies, China’s new hous­ing loans is­sued to in­di­vid­u­als amounted to 3.63 tril­lion yuan in the first three quar­ters, ac­count­ing for 35.7 per­cent of all new loans, ac­cord­ing to the Peo­ple’s Bank of China.

“Real es­tate has played a sup­port­ing role in China’s eco­nomic growth since the be­gin­ning of this year,” said Sheng Laiyun, a spokesman for the NBS, at a news con­fer­ence on Wed­nes­day on China’s eco­nomic per­for­mance in the third quar­ter.

“In the third quar­ter, real es­tate contributed about 8 per­cent of GDP,” he added.

But real es­tate con­trol mea­sures that were im­ple­mented by the end of Septem­ber in 22 first- and sec­ondtier cities are ex­pected to curb spec­u­la­tive hous­ing pur­chases and cool th­ese heated prop­erty mar­kets in the fourth quar­ter.

Ac­cord­ing to Sheng, some red-hot cities’ hous­ing sales de­clined re­mark­ably in the first half of Oc­to­ber, and “the high fever of real es­tate is grad­u­ally go­ing down”.

“Tight­ened prop­erty poli­cies will af­fect real es­tate in­vest­ment and may slow GDP growth in the fourth quar­ter,” said Yin Zhongli, a real es­tate ex­pert at the In­sti­tute of Finance and Bank­ing at the Chi­nese Academy of So­cial Sci­ences. “Mean­while, the an­tic­i­pa­tion of a cool­ing down in the prop­erty mar­ket will in­flu­ence real es­tate-re­lated in­dus­tries, such as steel and iron.”

PAN XU / XIN­HUA

A staff mem­ber of a Bei­jing re­alty com­pany ex­plains a project to cus­tomers at the Spring Re­alty Ex­hi­bi­tion at the Bei­jing Ex­hi­bi­tion Cen­ter in April.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.