Commercial residential sales dip in China

Written by Agencies | Beijing, May 31: | Updated: Jun 1 2008, 00:13am hrs
Commercial residential sales dipped four per cent in China during first quarter of the year, as buyers are adopting a "wait-and-watch" approach in response to a tight monetary policy, country's top economic planner said.

Housing price rises have generally slowed down and transactions continued to shrink following macro control policies, the National Development and Reform Commission (NDRC) said.

China has been pursuing a tight monetary policy keeping a check on the liquidity to rein in the worrying inflation and prevent overheating of the red hot economy.

The area of residential buildings sold in the January-April period fell 4 per cent year on year to 136.6 million square metres, compared with a 16.6 per cent growth registered in the same period last year, NDRC said.

Despite the slowdown, China completed the construction of 84.5 million square metres of commercial residential houses in the first four months, a 20.2 per cent rise as compared to the same period last year.

NDRC said the real estate investment soared 44.8 per cent in central China and 42.6 per cent in western China, while the booming eastern areas posted a 26.1 per cent jump.

A total real estate investment of 695.2 billion Yuan (USD 99.3 billion) was made during the period, a 32.1 per cent jump, it said.