Update | China property sales up 10 per cent in H1, but other indicators yet to recover
A recovery in China’s home sales has yet to take hold and give developers enough confidence to speed up land acquisitions and new construction, data from the National Bureau of Statistics showed on Wednesday, although there are expectations the second half will be better than the past six months under strong policy support, including easier and cheaper funding.
China’s property sales revenues rose 10 per cent year-on-year in the first half, quickening from an increase of 3.1 per cent in the first five months which ended a losing streak in the previous 15 months.
The residential sector outperformed with an increase of 12.9 per cent, while office and retail sales were still down 1.8 per cent and 1.2 per cent respectively in the first six months from a year earlier, the statistics agency said. The Chinese economy grew 7.0 per cent in the second quarter, beating forecasts for a 6.8 per cent increase.
Sheng Laiyun, the agency’s spokesman, told a news conference that property market recovery would be a strong driver of economic growth in the second half.
“One important factor is the property market, which showed signs of recovery in the second quarter,” he said. “The property market has a broad impact and its recovery will drive up other related sectors.”
However, property investment, which directly accounts for 15 per cent of the gross domestic product and affects more than 40 other sectors, grew 4.6 per cent year-on-year in the first half to 4.4 trillion yuan, slowing steadily since early 2014 when the once-sizzling property market started to correct due to a glut.
