China's property investment slump worsens in January-May

Home buyers stand near a window at an unfinished residential building of the Gaotie Wellness City complex in Tongchuan, Shaanxi province, China September 12, 2023. REUTERS/Tingshu Wang/file photo

BEIJING (Reuters) - Property investment in China fell 10.1% in the first five months of 2024 from a year earlier, after dropping 9.8% in January-April, even as policymakers doubled down on efforts to support the ailing sector and shore up consumer confidence.

Property sales by floor area in January-May fell 20.3% from a year earlier, compared with a 20.2% slump in January-April, National Bureau of Statistics (NBS) data showed on Monday.

New construction starts measured by floor area fell 24.2% on year, after a 24.6% drop in the first four months.

Funds raised by China's property developers were down 24.3% from a year earlier after a 24.9% fall in January-April.

China announced "historic" steps last month to stabilise its crisis-hit property sector, aiming to clear massive home inventories and boost housing demand.

However, analysts said the measures may not have a huge impact on the sector until falling home prices start to turn around.

(Reporting by Ella Cao, Liangping Gao and Ryan Woo; Editing by Kim Coghill)