After slowing down in May, it has been reported that growth in the Chinese property market actually increased last month.
According to calculations made by Reuters, which were based on figures from the National Bureau of Statistics (NBS), the property market grew by 7.9% in June – an increase of 0.6% from May.
These figures prove that the Chinese property is more resilient than initially thought. The Reuters calculations indicated that property sales
Growth in property investment, which mainly focuses on residential but also includes commercial and office space, accelerated to 7.9 percent in June from a year earlier, compared to a 7.3 percent expansion in May, according to Reuters calculations based on data from the National Bureau of Statistics (NBS).
Real estate investment is a major driver of the economy affecting more than 40 other sectors. But worries over the potential bursting of price bubbles in China’s biggest cities have led to a raft of government cooling measures in recent months, as buyer demand appeared to be more resilient than expected.
Despite the recent efforts by the Chinese government to curb property prices, mortgage lending rose to 738.4 billion yuan in June from 610.6 billion yuan in May, again according to Reuters calculations – but this time based on figures recently released by China’s central bank.
In fact, a recent survey undertaken by China’s central bank revealed that 31.2% of Chinese households expect housing prices to rise in the third quarter of this year, while 46.1% of households expect them to remain the same.