China’s Property investment falls 8.5% in H1

According to data released on Tuesday by the National Bureau of Statistics (NBS), property investment in China witnessed an 8.5% decline in the initial seven months of the year when compared to the same period the previous year. This downturn follows a 7.9% slide in investment during the January-June period.

Official data also indicates that property sales, as measured by floor area, fell by 6.5% in the January-July period year-on-year, a more significant drop compared to the 5.3% decrease seen in the first six months of the year. This decline in sales can be attributed to ongoing weak demand and a deepening property debt crisis.

When assessing new construction starts, a metric measured by floor area, a decrease of 24.5% year-on-year was observed in the initial seven months. This fall follows a 24.3% drop during the first half of the year.

Additionally, funds raised by China’s property developers saw an 11.2% decrease on a year-on-year basis, extending the 9.8% decline noted during January-June.

China’s ongoing property debt crisis is exacerbating economic challenges, with limited robust policy support compounding the situation. This crisis is adding to the hurdles faced by the already struggling economic recovery.

Pan Finance is a print journal and news website providing worldwide intelligence on finance, economics and global commerce. Known for our in-depth analysis and opinion pieces from esteemed academics and celebrated professionals; our readership consists of senior decision makers from across the globe.

Contact us