China sees property sector making greater contribution to economic growth

[BEIJING] China sees its property sector showing a greater contribution to economic growth in the first quarter this year, the statistics bureau said on Friday.

Spokesman Sheng Laiyun said there was increased divergence between property prices in major cities and smaller cities, while prices would continue to come under pressure from big inventories.

Mr Sheng's remarks follow news that China's property investment growth quickened to 6.2 per cent in the first three months of 2016, as national sales growth accelerated to a near three-year high on a range of official stimulus measures.

The growth in real estate investment, a major driver of the economy which affects more than 40 other sectors from cement to furniture, was up from an increase of 3 per cent in the January to February period.

China's economy grew 6.7 per cent in the first quarter from a year earlier, meeting expectations but at its slowest pace in seven years.

REUTERS