Investment in China’s property market grew at its slowest rate in six months in June, according to official data released on Monday, with developers struggling with fewer financing channels and new purchases also weakening.
Growth in real estate investment fell to 8.4% year-on-year last month, from 9.8% y/y in May. New construction, measured in terms of floor area, grew 15% y/y down from 20.5% in May, suggesting developers are not as bullish on one of China’s key markets. Sales, also by floor area, rose just 4.5% y/y in June, from 8% y/y growth the previous month.
There is also reason to believe that investment will further decline, as Beijing attempts to balance controlling an overheated market and ease the nation’s debt burden without triggering any sudden crashes.
The National Bureau of Statistics said that the data reflected a robust property market, however, adding that it expects “relatively fast growth” over the next six months.