China’s property fall overshadows spending rebound in May, challenging Beijing’s economic targets
- The property-investment decline reached double-digits in May, but consumers in China open their wallets a bit more, year on year
The performance of China’s economy was mixed in May, with property investment contracting further but consumer spending slightly more than the same time a year ago.
The government data also showed that overall fixed-asset investment, which includes properties, manufacturing investment and transport construction, rose by 4 per cent in the first five months of 2024 compared with a 4.2 per cent gain in the January-April period.
Property investment fell by 10.1 per cent, year on year, in the first five months of 2024, worsening from a 9.8 per cent drop from January through April and a 9.5 per cent drop in the first quarter.
We must acknowledge that it will take some time for the effects of policy measures to be shown
Floor space of new homes sold fell by 20.3 per cent in the first five months of the year compared with the same period of 2023. The total sales value of new homes plunged 27.9 per cent, year on year.