Real Estate Investment Slows Down Further as Property Sales Show Signs of Improvement
The growth in real estate investment in China slowed even further in the first ten months of 2014, with property sales showing signs of improvement that indicates the government efforts in boosting the housing sector may start to have its effect. Property investment that affects 40 other sectors ranging from furniture to cement frew at their slowest pace in five years between January to October and increased by 12.4 percent in the same period a year ago.
This compared to the annual increase of 12.5 percent for the first nine months and has mark the slowest pace since July of 2009. The slowdown of the property investment growth continued to drag down China broad economy as property sales dropped 1.6 percent in October based on floor space which eased substantially from a 10 percent drop in September after the government announced fresh measures in late September in support of the sluggish property market that include mortgage rates.
Reports also showed mortgage loans to homebuyers have dropped 4.3 percent in the first ten months of 2014 that eased from the drop of 4.9 percent in January to September period ad banks quicken mortgage approvals and provided preferential rates.