Construction gigs may get harder to come buy as new investment slows
This is the week that China issues its latest batch of monthly data on the real estate sector, as tighter policy enforcement in the country’s major cities leads to fewer home sales and less investment, while prices rise in smaller cities, as demand is diverted away from first and second-tier centres.
Here are a few headlines from around the web that feature data and analysis derived from the latest figures from China’s National Bureau of Statistics and other sources.
Home Sales Volumes Fell in October
Sales of new homes, measured by area, continued to decline in China during the most recent month, according to data released this week. The volume of new homes sold on the mainland fell 1.3 per cent in October from a year earlier, a bigger contraction than the 0.8 per cent seen in September, according to the Post’s calculation based on data released by the National Bureau of Statistics on Wednesday. Measured by value, it rose 9.9 per cent last month from a year earlier.
Although home prices in 70 major Chinese cities for October will be released on Thursday, calculations comparing total national home sales value with area showed average home prices fell to 8,535 yuan per square metre in October, from 8,751 yuan in September. Read more>>
Real Estate Investment Slows to 10-Month Low
Growth in China’s real estate investment in October cooled to a 10-month low and home sales fell again, as developers held back expansion plans in the face of broadly softening economic conditions.
The property market – a key driver of economic growth – has been cooling in recent months, as land auctions tumbled and various tightening measures kept overall home sales in check. Read more>>
Failed Land Auctions Rise as Home Sales Slow
The number of failed land auctions has doubled to 796 from January-July 2018.
China is facing yet another drag to its economic growth outlook as the softening property market adds to its list of growing woes, according to Fitch Solutions.
The real estate fixed asset investment (FAI) growth is set to weaken, following its 9.9% YoY growth from January to September. Property investment growth also slowed for the second consecutive month to 8.9% in September from 13.2% in July. Nationwide property sales volume fell by 3.6% YoY in September. Read more>>
Smaller Cities Take the Lead as China Home Prices Rise 1.0%
China’s new home prices rose 1.0 percent in October from a month earlier, faster than a 0.9 percent increase in the previous month, Reuters calculated from data published on Thursday by the National Bureau of Statistics (NBS).
On a yearly basis, average new home prices in China’s 70 major cities increased 8.6 percent, accelerating from the 7.9 percent gain in September. Read more>>
Retail Sales Slump as Industrial Output Gains
China delivered a mixed economic report card for October on Wednesday as softening retail sales pointed to a consumption slowdown, even as a pick-up in industrial output and investment suggested support measures may be starting to take hold.
Taken together with weak credit data the previous day, the latest readings reinforced consensus views that the world’s second-largest economy will continue to cool in the next few quarters. Read more>>
Mingtiandi cautions its readers that lower and mid-level officials on the mainland who are charged with reporting on the country’s real estate market are likely to have significant incentives to ensure that reports match government targets, and to interpret these official figures appropriately.
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