China property sales up 26% in July
By Romesh Navaratnarajah: China's property sector showed signs of recovery as revenue from sales grew 26.3 percent in July from a 6.9 percent rise in June, even as property investment declined for three months due to government restrictions.
In the first seven months of 2012, property investment slipped to 15.4 percent from 16.6 percent in 1H2011, according to the country's National Bureau of Statistics (NBS).
"Property investment will maintain relatively stable growth in the upcoming months as China's slowing economy restrains the government from imposing further tightening measures," said Zhang Xinfa, Economist at Galaxy Securities in Beijing.
The property industry is waiting for the central government's decision on whether to tighten limits on the market, after eight "inspection teams" went to the largest cities in late July to check if property curbs were being enforced by local governments.
"The government's concern is that the property market will rebound past the level they want. But we haven't seen the turn in price and transactions feed into construction activity, and the government needs that to feed into the construction activity if economic growth is to recover," said Alistair Thornton, Economist at IHS Global Insight in Beijing.
According to the China Real Estate Index System (CREIS), average housing prices in the country's 100 major cities surged in July.
NBS data also revealed a 9.8 percent drop in construction during the first seven months of the year, an increase from the 7.1 percent decline in 1H2012. Related Stories: Capitaland to jointly develop Tokyo property Ascott to manage 7th property in the Philippines Beyonce and Jay-Z splash US$400k on holiday rental home
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