Investment in the mainland property market has dramatically revived, with capital invested in the sector surging 26.5 per cent in the first five months of the year.
Having suffered more than five years of falling prices and chronic over-supply, investment in property projects amounted to 153.5 billion yuan (about HK$144.2 billion), compared with 121.34 billion yuan over the same period last year, according to the State Statistical Bureau.
However, projects involving foreign investment capital dropped 23.3 per cent over the same period to 4.4 billion yuan, the bureau said.
The increase was mainly attributable to growth in the housing sector and retail property investment.
Housing investment rose 30.7 per cent to 105.7 billion yuan, while money invested in retail property grew 38.5 per cent to 16.4 billion yuan, mainland Web site people.com quoted the bureau as saying.
Investments in office property dropped 4.3 per cent to 8.1 billion, and analysts predicted the fall was likely due to investors' concerns over a large supply over-hang.