The Star Malaysia - StarBiz

October property investment slumps at fast pace


BEIJING: China’s real estate investment fell at the fastest pace in 32 months in October, as strict Covid-19 restrictio­ns and property woes weighed, but an aggressive plan to restore liquidity in the sector has boosted the outlook.

Property investment fell 16% year-on-year in October – its biggest drop since JanuaryFeb­ruary 2020, according to Reuters calculatio­ns based on data from the National Bureau of Statistics (NBS).

It slumped 12.1% in September.

NBS reports aggregate property investment data for January and February every year.

For the January-october period, property investment dropped 8.8% after decreasing 8% in the first nine months of the year.

China’s property sector, once a pillar of growth, has faced multiple headwinds since regulators sought to curb excessive borrowing from mid-2020.

The clampdown has triggered falls in property sales, bond defaults and the suspension of housing constructi­on, angering homeowners which have threatened to stop mortgage payments.

New constructi­on starts measured by floor area by developers fell in the double-digits for the 15th straight month in October, down 35.1% on the year after a 44.4% drop in September.

Funds raised by developers fell 26% from a year earlier in October, after a 21.3% slump in the previous month. Property sales dropped 23.2% year-on-year in October.

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