Shenzhen leads the way as China turns to property investment frenzy to boost growth
- Investment into real estate development in Shenzhen surged 17.0 per cent from a year earlier in the first five months of 2020
- Property investment in Shanghai also expanded 3.7 per cent in the first five months of the year, reversing a fall of 2.9 per cent in the January-April period
Property investment has surged across cities in China, especially across the border from Hong Kong in Shenzhen, even though the broad economy is still struggling amid coronavirus pandemic, a trend that runs against Beijing’s intention of channelling more funds into farms and factories instead of office towers.
The double-digit growth sharply contrasted a fall of 11.9 per cent in non-property investment during the same period.
The city’s retail sales also shrank 16.5 per cent, while the local industrial output contracted 5.6 per cent and its exports also declined 8.3 per cent.
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In Shanghai, property investment expanded 3.7 per cent in the first five months of the year, reversing a fall of 2.9 per cent in the January-April period, according to local government data.