Growth in property investment and sales in China continues to moderate as a housing recovery quickly cools.
Property investment in January-July rose 5.3 percent from a year earlier, data from the National Bureau of Statistics (NBS) showed on Friday, slowing from an increase of 6.1 percent in January-June, while property sales by floor area grew 26.4 percent, down from 27.9 percent.
Friday’s weak property investment data is a another bad omen for China’s economic growth, as weak global and domestic demand cut into exports and industrial production.
China’s property sector had a hot start to the year after slowing in 2015, as monetary easing and stimulus measures took effect.
Home price gains have started to slow, however, as authorities start to tighten policies amid signs of overheating in the largest cities.
Real estate investment directly affects about 40 other business sectors in China and is considered to be a crucial driver for the economy.
A stronger housing market helped China’s economy stabilise at 6.7 percent growth in the first half of the year, but a slowdown in the sector could put a damper on growth.
The property sector grew 9.1 percent in the first quarter of the year, but slowed to 8.8 percent growth in quarter two.