China’s real estate industry weakened across the board in November. Affected by the rectification actions launched by the Chinese government, real estate investment, house sales, and newly built floor space all declined.
According to estimates by the Wall Street Journal on data released by the National Bureau of Statistics of China on Wednesday, real estate investment fell by 4.3% in November, compared with a decline of 5.4% in October. Official data released on Wednesday showed that from January to November this year, investment in real estate development across the country increased by 6.0% year-on-year, which was lower than the 7.2% increase in the first 10 months of this year.
In the first 11 months of this year, China’s newly-started housing area further shrank. From January to November, the floor space of housing starts fell by 9.1% year-on-year, which was greater than the 7.7% drop in the first 10 months of this year. As the Chinese government’s measures to curb speculation in the property market have taken effect, the floor space of new housing starts in China has been declining since July.
From January to November, the growth rate of residential sales (an important measure of demand) slowed to 9.3%, compared to the 12.7% growth rate in November and October.
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