World Economy

Beijing Commercial Property Sales Down 45%

Beijing Commercial Property Sales Down 45%Beijing Commercial Property Sales Down 45%

Sales of commercial property in Beijing by surface area fell 44.8% in the first eight months of the year to 5.3 million square meters versus the same period last year, the city’s statistics bureau said.

That included a 39% decline in residential property sales to 3.45 million square meters, while office building sales fell by 68.5% to 808,000 square meters, Reuters reported.

Commercial property under construction fell by 5.4% to 113.4 million square meters. New construction amounted to 12.5 million square meters, down by 26%, while completed property came to six million square meters, a drop of 37% year on year.

Meanwhile, China’s real estate investment growth picked up pace again in August as demand held up despite various government curbs, unlike factory output, fixed asset investment and retail sales which fell short of expectations.

A resilient property market will be good news for China’s policymakers, who want to keep the real estate market stable ahead of a once-in-five-years Communist Party congress in October.

Real estate investment, which directly affects 40 other business sectors in China, is considered a crucial driver for the economy.

Analysts said an acceleration in property investment showed developers’ willingness to replenish a falling inventory of finished homes, on the back of strong demand from smaller cities this year.

“I think there are still downward risks in the short term,” said Ding Shuang, chief economist at Standard Chartered Greater China research department. “The pick-up in investment is likely to be a short-term fluctuation while the overall trend points to a further slowdown for the rest of the year.”


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