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WhatWood No category Housing investment in China growing amid slowing economy

Housing investment in China growing amid slowing economy

15 December 2017 ` 12:45  

The National Bureau of Statistics of China shows that total investment in real estate development in the first ten months of 2017 increased by almost 8% year on year, but that the pace of growth has been slowing throughout the year, ITTO reported.

Real estate investment in the eastern region was up 8% on-year, 13% in the central region, 4% in the West of China and fell marginally in the Northeast. Prospects for further growth appear good as the land area purchased by real estate developers continues to rise and is up almost 13% year on year. The Nikkei Asian Review, quoting the Financial Times, has reported that China’s stock of unsold homes continues to fall.

Analysts suggest activity in the building and construction sectors could soften the negative impact of the likely economic slowdown next year. China’s real estate sector is a major driver of growth accounting for about a fifth of GDP if output from other industries driven by housing such as household items, wood products, steel and cement are included.

Meanwhile, there are first hints of slowing consumption in China. The country’s economy is on track to meet targets set by government but many analysts have expressed concern over rising debt levels. Domestic consumption is generally strong, but China’s official manufacturing Purchasing Managers’ Index (PMI) for October was lower than expected. Both production and demand fell in October, a decline put down to reduced output as companies, especially those in the Northeast of the country, complied with environmental regulations and the long holiday in October.

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