China’s Real Estate Investment Slows But Sales Start Recovering

Growth in China real estate investment slowed further in the first 10 months of 2014, but property sales showed some signs of improvement, indicating Beijing’s efforts to boost the ailing sector may be starting to have an effect.

Property investment, which affects more than 40 other sectors from cement to furniture, grew at its slowest pace in over five years between January to October, rising 12.4 percent from the same period a year earlier, the National Bureau of Statistics(NBS) said on Thursday.

That compared with a rise of 12.5 percent in the first nine months and was the slowest pace since July 2009.

“Slowing property investment growth has continued to drag on China’s broad economy,” said Du Zhengzheng, an economist at China Development Bank Securities in Beijing.

“We expect the trend will continue in coming months even though sales picked up.”

Property sales fell 1.6 percent in October in terms of floor space, easing substantially from September’s 10.3 percent drop.

That came after Beijing announced steps in September to support the sluggish property market, including lower mortgage rates and down payments for some home buyers

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza