China property investment rebounds in April as economy reopens

Beijing

REAL-ESTATE investment in China quickened in April while property sales fell at a much slower pace, Reuters calculations based on official data showed on Friday, providing some relief as Beijing looks to restart the economy from coronavirus-related shutdowns.

The property market is a key driver of growth in the world's second-largest economy and was among many segments of the Chinese economy hit hard by Covid-19 and tough containment measures.

Property investment, which mainly comprises residential housing but also includes offices and other commercial building, rose 7 per cent in April, picking up from the meagre gain of 1.2 per cent in March, Reuters calculated from National Bureau of Statistics (NBS) data. It still fell 3.3 per cent in the first four months of 2020 from a year earlier.

Property sales also showed signs of improvement, falling 2.1 per cent measured by floor area compared with 14.1 per cent in March. They still fell 19.3 per cent in the first four months of 2020, largely due to a market freeze in January and February as city-wide lockdowns paralysed business activity and kept would-be buyers away from showrooms.

New construction starts measured by floor area fell just 1.3 per cent from a year earlier, compared to a 10.4 per cent drop in March. Funds raised by China's property developers fell 10.4 per cent in January to April, but they were better than a 13.8 per cent drop for the first three months of the year. REUTERS