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China's property investment grows most in 8 months in March

Infra News - Published on Fri, 19 Apr 2019

Image Source: The Indian Express
Reuters reported that property investment in China grew the most in 8 months in March, as demand recovered and market sentiment improved in the wake of looser monetary conditions and a modest relaxation of home purchase curbs. Real estate investment, which mainly focuses on the residential sector but also includes commercial and office space, is a key driver of growth in the world’s second-largest economy. The data, along with a raft of official economic indicators released, suggests growth may be stabilising after taking a hit from a multi-year government crackdown on debt risks and a bruising trade war with Washington.

According to Reuters calculations based on data released by National Bureau of Statistics (NBS), China’s real estate investment rose 12 percent in March from a year earlier, accelerating slightly from 11.6 percent growth reported for the combined January-February period. That marks the strongest monthly growth since July 2018, when it rose 13.2 percent.

For the first three months, property investment increased 11.8 percent on-year, compared with a 10.4 percent gain in the same period a year earlier. The pace was the fastest quarterly gain since 2014 for the January-March period.

China’s property market has seen a resurgence recently as some local governments have loosened restrictions on home purchases in a bid to boost economic activity, while Beijing’s call for banks to ramp up lending and lower interest rates has also helped boost market confidence.

Economists expect China’s real estate investment to rise by 7 percent for the year, a Reuters poll showed last month, up from 4 percent in the previous poll, as some developers have shown more confidence in the market as domestic financing conditions improve.

New home prices in China also grew slightly faster in March after a slowdown the previous month.

In March, property sales by floor area, a major indicator of demand, rose at its fastest pace in seven months at 1.8 percent from a year earlier, compared with January-February’s 3.6 percent drop, according to Reuters calculations. In the first quarter of 2019, property sales by area fell 0.9 percent, narrowing from a 3.6 percent drop in the first two months of this year.

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Posted By : Rabi Wangkhem on Fri, 19 Apr 2019
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