China property investment growth slowed last month

Annual growth in real estate investment in China, a main driver of the economy, slowed last month to its lowest pace in a year, falling in tandem with property sales revenues.

Property investment grew 12.3 per cent last month from a year earlier, down from an annual rise of 20.2 per cent in November and 25 per cent in October and September, according to Reuters calculations based on official data released yesterday.

Analysts said growth would moderate further in coming months before a possible revival in the latter half of the year, depending on how fast China relaxes its monetary policy and how much developers cut prices.

Real estate investment grew 27.9 per cent to 6.2 trillion yuan (S$1.26 trillion) last year, accounting for 13 per cent of China’s gross domestic product, the National Bureau of Statistics said. It increased 33.2 per cent in 2010.

Property sales rose 12.1 per cent for the whole of last year, translating into an annual drop of 1.3 per cent last month alone, the third straight month of decline.

Source : Today – 18 Jan 2012

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