China property investment continues to decline despite support measures
China's property sector remains weighed down by weak housing demand, with the decline in real estate investment deepening despite Beijing's support measures.
Property investment fell 10.1% Y/Y in the first five months of the year, after sliding 9.8% in January-April, the National Bureau of Statistics said on Monday. The floor space of new commercial buildings sold dropped 20.3% Y/Y in January-May, while funds raised by property developers fell 24.3%.
"This data was certainly on the disappointing side and may ring some alarm bells, as May's policy support package has not yet translated to a slower decline of housing prices, let alone a stabilization," said Lynn Song, chief economist, ING. "This data further indicates that the property sector will remain a headwind on growth this year."
China last month announced sweeping measures to support its housing market, which included easing mortgage rules, to clear growing inventories of unsold homes.
The new property sector data, along with mixed economic readings, sent China's benchmark index SSE Composite (SHCOMP) 0.6% lower on Monday. The Hang Seng Properties index was down 0.5%.