Growth in real estate investment in October dropped to a 10-month low while home sales continued to decline, suggesting that developers are shelving plans as the market loses momentum.
Investment in real estate development grew 9.7% year-on-year for the year through October, down from 9.9% for the first three quarters, official data showed. New construction projects, measured by floor area, rose by 16.3% for the first 10 months, down from 16.4% up to September.
Sales fell by 3.1% last month compared with a year earlier, following a 3.6% drop posted in September.
“The property sector is clearly heading into a down-cycle,” analysts at Macquarie Capital told Caixin.
China’s property sector has enjoyed solid growth for several decades, aided in part by speculative purchases and roaring market confidence. Government curbs on property purchases in many big cities, however, are starting to have a visible effect, according to Caixin.