China H1 property investment slows, sales dip

[BEIJING] Growth in China's real estate investment hit 10.9 per cent in the first six months of the year on an annual basis, easing from 11.2 per cent in January-May, official data showed on Monday.

It marked the slowest pace seen since 2018, when it grew 9.5 per cent year-on-year in the January-December period.

Real estate investment, which is mainly focused on the residential sector but also includes commercial and office space, is a major driver of growth in the world's second-largest economy and has so far been one of the few bright spots amid a broader slowdown.

Property sales by floor area fell 1.8 per cent in annual terms in January-June, deepening from a 1.6 per cent decline for the January-May period, the National Bureau of Statistics (NBS) said in a statement.

China's property market has seen a recent resurgence as some local governments eased home purchase rules to boost economic activity, while Beijing's call for banks to ramp up lending and lower interest rates has also helped boost investor confidence.

But the picture is very uneven, and some analysts caution such a rebound might be difficult to sustain as broader economic growth slows and official property market curbs are expected to remain in place in most cities.

REUTERS