China’s property investment slumps 10.1% in H1 ’24

China’s property market is still struggling, with a 10.1 per cent year-on-year drop in investment in the first half of 2024. Despite recent policy measures to support the market, the decline remains consistent with previous data from January to May.

The latest data from the National Bureau of Statistics (NBS) shows a 19.0 per cent year-on-year drop in property sales by floor area in the first half of 2024, a slight improvement from the 20.3 per cent decline in the previous months.

New construction activity continued to decline, with new construction starts falling by 23.7 per cent year-on-year in the first half of the year, compared to a 24.2 per cent drop in the previous five months.

Chinese property developers are facing a slowdown in financing, with funds raised dropping by 22.6 per cent year-on-year in the first half of 2024.

This decline follows a 24.3 per cent drop in the January-May period, limiting developers’ ability to start new projects.

Recent policy measures may boost demand in major cities, but smaller cities are still struggling with excess unsold housing and low consumer spending.

This underscores the necessity for specific and enhanced stimulus efforts to revive local economies.

Attribution: Reuters