China’s urban land sales rise 8% by area in 2017

Land sales increased in Chinese cities last year as the government moved to cool the market with higher supply, according to the China Index Academy, a property research organization.

Land sales in 300 Chinese cities totaled 950.36 million square meters in 2017, up 8 percent from 2016.

Sales of land for residential use stood at 354.33 million square meters, up 24 percent.

Sales in first-tier cities like Beijing, Shanghai and Guangzhou were particularly robust, as local governments increased land supply to cool down runaway house prices fueled by huge demand and limited supply.

In the first-tier cities, sales jumped 46 percent to 29.79 million square meters last year, according to the academy.

Revenue from land transactions rose 36 percent to 4.01 trillion yuan ($620 billion).

China’s property market, once deemed a major risk for the broader economy, cooled in 2017 amid tough curbs such as purchase restrictions and increased down payment requirements as the government sought to rein in speculation.

Due to these efforts, investment and sales in China’s property sector slowed.

Real estate investment rose 7.5 percent during the first 11 months, slowing from 7.8 percent in the first 10 months.

Property sales in terms of floor area climbed 7.9 percent in the first 11 months, retreating from 8.2 percent in January-October.

With the market holding steady, Chinese authorities are aiming for a “long-term mechanism” for real estate regulation, and a housing system that ensures supply through multiple sources and encourages both housing purchases and rentals.