China land sales revenue falls at slower pace in March
CHINA’S government land sales revenue fell at a slower pace in March, said the Ministry of Finance on Tuesday (Apr 18), as a slew of stimulus policies lifted developers’ sentiment.
Income from land sales, the biggest source of funds that local governments raise directly, fell 27 per cent in the first three months of the year from the figure recorded in the same period a year earlier, data from the ministry showed.
In March, land sales slumped 23.2 per cent from a year earlier, slower than a 29 per cent decline in the January to February period, as indicated by Reuters calculations based on the ministry’s data.
“With the implementation of a series of policies introduced by the country to support the stable and healthy development of the real estate market, the market is seeing some positive changes but is still in the process of gradual recovery,” Xue Xiaoqian, an official at the finance ministry, told reporters in Beijing.
The property sector slumped sharply last year, but is now being buoyed by a slew of policies aimed at developers and buyers. Official data for March showed that home prices rose at the fastest pace in 21 months, although property investment continued its decline.
Homebuyers are regaining confidence in property developers and “if pre-sold housing is digested by the market, property developers should be able to get fresh cash-flow from home sales in 2024”, said Iris Pang, chief economist at ING for Greater China.
China’s economy grew at a faster-than-expected pace in the first quarter, as the end of strict Covid curbs lifted businesses and consumers out of crippling pandemic disruptions. However, headwinds from a global slowdown point to a bumpy ride ahead. REUTERS
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