China's Nov property investment growth slows as land purchases weaken

[BEIJING] China's November property investment grew at a slower pace, as regulators stepped up scrutiny on the most leveraged and largest developers in the sector.

Real estate investment in November rose 10.9 per cent from a year earlier, easing from 12.7 per cent growth seen in October but still at an elevated pace, according to Reuters calculations based on data from the National Bureau of Statistics on Tuesday.

The property market, a key driver of China's growth, quickly regained strength after coronavirus restrictions were lifted, with home prices and investment growing at a robust pace in recent months.

But as sales recover, regulators have increased scrutiny on financing activities of developers and buyers to prevent rampant debt growth. Chinese policymakers have said they will seek to maintain the healthy development of the property market.

Indeed, land purchases by developers fell 5.2 per cent in the first 11 months of the year, worsening from January-October's 3.3 per cent decline.

Property sales by floor area remained robust, rising 12 per cent in November from a year earlier, albeit a bit down from a 15.3 per cent growth in October.

New construction starts measured by floor area increased 4.1 per cent year-on-year last month, compared with October's 3.5 per cent uptick.

Funds raised by China's property developers rose 6.6 per cent in January-November, versus a 5.5 per cent increase in the previous period.

REUTERS