Statistics Shows Investment from the Property Sector have Increased
Investments coming from the China property sector increase by 6.2 percent year on year for the first quarter of 2016. Data from the National Bureau of Statistics shows the expansion continues to pick up after the 3 percent increase in the January to February period and the 1 percent growth for the whole year in 2015. But the first quarter rate remains low at 8.5 percent growth that was seen in the same period in 2015.
The property sector is a significant supporting force in the economic growth in China and prolonged weakness in the sector and growth deceleration in the property investment is believed to be a major risk in the Chinese economy and a reason behind the sluggish demand. According to the National Bureau of Statistics,an investment in residential housing have increased by 4.6 percent for he first quarter. New housing construction grew 19 percent based on floor area compared to the 14 percent decrease in 2015. Based on floor terms property sales increased 33 percent for the first three months higher than the 6.5 percent gain for 2015. Sales revenue jumped 54 percent and figures also showed land area purchased by property developers have dropped 11 percent which is better than the 31 percent decline that was recorded in 2015.
The property sector show signs of improvement in the last three months as home prices rise in big cities including Shenzhen, Shanghai and Beijing. although markets in smaller cities remained subdued because of a supply slump, the government is reducing stocks. Around 735 million square meters of finish but unsold properties in China are found across China by the end of March a decrease by 4,2 million square meters from the end of February.