[photopress:property_investment_rises.jpg,full,alignright]In a sense these stories become repetitive. Despite everything the government does China’s real estate investment just keeps going up. The National Bureau of Statistics (NBS) announced it soared 28.5% from a year earlier to RMB988.7 billion ($130.6 billion) in the first half of 2007.
The growth was 1.6% higher than the first quarter and 4.3% higher than the same period last year.
Analysts contributed the rising investment to booming housing demand, excessive liquidity and robust housing price hikes. That seems to cover it. No revelations there, then.
Qin Hongyu, analyst with BNPPrime Peregine, said, ‘The land resources authority has accelerated land supply growth in the first half of the year in hope that surging house prices could be reined in, which inevitably led to an investment hike in the real estate sector.’
Amid investment by real estate developers, domestic bank loans rose by 25.9% year-on-year, enterprises’ self-raised funds increased by 28.4% and foreign funds soared 68.7%.
The total area of ‘developed’ land in China rose 7.6% to 118 million square meters in the first half.
Source: China View