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Budget housing a boost for investment
By Winny Wang |
June 15, 2011, Wednesday
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Print Edition
Print Edition
ROBUST property investments propelled urban fixed-asset investments to grow at a faster pace in May thanks to the budget housing program.
Property investment gained 34.6 percent through May to 1.87 trillion yuan (US$288.6 billion), compared with a 34.3 percent increase in the first four months, among which residential investments jumped 37.8 percent to 1.33 trillion yuan, the National Bureau of Statistics said yesterday.
"As local governments are required to start the construction of 10 million units of budget apartment by the end of November this year, and the central government appears determined to secure the financing of the program, investment is expected to remain strong for the rest of the year," according to Citi Investment Research & Analysis.
In the first five months, housing sales gained 9.1 percent to 329 million square meters, including an 8.5 percent increase for residential sales.
Transaction value of residential housing gained 16 percent in the period, faster than the 11 percent increase through April, after developers marketed more projects during the Labor Day holiday. New property construction climbed 23.8 percent in the first five months to 761 million square meters, the bureau said.
Meanwhile, urban fixed asset investment grew 25.8 percent in the first five months of this year on a yearly basis, faster than the 25.4 percent growth in the first four months.
"The inconsistency between strong investment figure and soft monetary data seems to support our view that the fast development of the non-banking financial sector is playing a bigger and bigger role in raising capital and funding economic activity," said Yao Wei, an economist at Societe Generale.
Property investment gained 34.6 percent through May to 1.87 trillion yuan (US$288.6 billion), compared with a 34.3 percent increase in the first four months, among which residential investments jumped 37.8 percent to 1.33 trillion yuan, the National Bureau of Statistics said yesterday.
"As local governments are required to start the construction of 10 million units of budget apartment by the end of November this year, and the central government appears determined to secure the financing of the program, investment is expected to remain strong for the rest of the year," according to Citi Investment Research & Analysis.
In the first five months, housing sales gained 9.1 percent to 329 million square meters, including an 8.5 percent increase for residential sales.
Transaction value of residential housing gained 16 percent in the period, faster than the 11 percent increase through April, after developers marketed more projects during the Labor Day holiday. New property construction climbed 23.8 percent in the first five months to 761 million square meters, the bureau said.
Meanwhile, urban fixed asset investment grew 25.8 percent in the first five months of this year on a yearly basis, faster than the 25.4 percent growth in the first four months.
"The inconsistency between strong investment figure and soft monetary data seems to support our view that the fast development of the non-banking financial sector is playing a bigger and bigger role in raising capital and funding economic activity," said Yao Wei, an economist at Societe Generale.
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