China Jan-Feb prop­erty in­vest­ment grows 3pc

The Pak Banker - - 6BUSINESS -

BEI­JING: China's real es­tate in­vest­ment rose 3 per­cent in the first two months of 2016 in year-on-year terms, as growth in the area of prop­erty sold sped up to 28.2 per­cent, of­fi­cial data showed on Satur­day.

The in­vest­ment growth, re­ported by the Na­tional Bureau of Sta­tis­tics (NBS), com­pared with an in­crease of 1 per­cent in the full year of 2015. The rise in sales by area was above the 6.5 per­cent an­nual gain in 2015. Real es­tate in­vest­ment, which di­rectly af­fects about 40 other busi­ness sec­tors in China, is con­sid­ered to be a cru­cial growth driver.

While a slew of govern­ment mea­sures and in­creased lend­ing helped boost the hous­ing mar­ket, a huge over­hang of un­sold homes in smaller cities has dis­cour­aged new con­struc­tion and in­vest­ment. New con­struc­tion rose 13.7 per­cent dur­ing the Jan­uary to Fe­bru­ary pe­riod from a year ago, re­vers­ing a 14.0 per­cent an­nual drop in 2015, the NBS data showed.

China's hous­ing mar­ket, which ac­counts for around 15 per­cent of the econ­omy, be­gan to sta­bi­lize in big cities last year, helped by a raft of govern­ment mea­sures.

Still, the re­cov­ery re­mains un­even across the coun­try as small cities still face huge in­ven­to­ries of un­sold homes, while au­thor­i­ties in some big cen­ters have al­ready an­nounced mea­sures to cool the mar­ket. To boost the hous­ing mar­ket, China cut down pay­ments last month for first- and se­cond-time home buy­ers and low­ered trans­ac­tion taxes for some home buy­ers.

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