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BIZCHINA / Center

Property investment up 28.5% in 1st half

(Xinhua)
Updated: 2007-07-20 16:25

China's real estate investment soared 28.5 percent from a year earlier to
988.7 billion yuan (US$130.6 billion) in the first half of 2007, the
National Bureau of Statistics (NBS) announced on Friday.

The growth was 1.6 percentage points higher than the first quarter and
4.3 percentage points higher than the same period last year, according to
the NBS.

Analysts contributed the rising investment to booming housing demand,
excessive liquidity and robust housing price hikes.

"The land resources authority has accelerated land supply growth in the
first half of the year in hope that surging house prices could be reined
in, which inevitably led to an investment hike in the real estate
sector," said Qin Hongyu, analyst with BNP Prime Peregimne.

Amid investment by real estate developers, domestic bank loans rose by
25.9 percent year-on-year, enterprises' self-raised funds increased by
28.4 percent and foreign funds soared 68.7 percent.

The NBS announced on Friday that the real estate climate indices reached
103.63 points, 0.31 point higher than May and 0.7 point higher than the
same period last year.

The total area of "developed" land in China rose 7.6 percent to 118
million square meters in the first half.

(For more biz stories, please visit Industry Updates)

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