China’s home sales growth abated in May following a brief rebound, underscoring weakening momentum in the economy, reports Bloomberg. The value of new home sales by the 100 biggest real estate developers rose 6.7% to RMB 485.4 billion ($68.3 billion) from a year earlier, according to preliminary data from China Real Estate Information Corp. That compares with gains of more than 29% in the previous two months. Sales fell 14.3% month-on-month.
China’s property sector has avoided collapse but remains a major financial risk to the economy. Signs of weakness are emerging in the residential market after sales and prices rebounded briefly following a historical slump of about 18 months.
High-frequency indicators in recent weeks show momentum in home purchases is fizzling, despite Beijing’s effort to prop up the market. The country issued sweeping support measures for the industry in November.
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