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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.