REAL estate investment growth in China picked up pace again in August as demand held up despite various government curbs, unlike factory output, fixed-asset investment and retail sales which fell short of expectations.

A resilient property market will be good news for China’s policymakers, who want to keep the real estate market stable.

Real estate investment, which directly affects 40 other business sectors in China, is considered a crucial driver for the economy.

Analysts said an acceleration in property investment showed developers’ willingness to replenish a falling inventory of finished homes on the back of strong demand from smaller cities this year.

“I think there are still downward risks in the short term,” said Ding Shuang, chief economist at Standard Chartered’s greater China research department. “The pick-up in investment is likely to be a short-term fluctuation while the overall trend points to a further slowdown for the rest of the year.”

New construction starts measured by floor area, a telling indicator of developers’ confidence, were up 5.3 percent in August from a year earlier, after contracting in July for the first time since last September.

Sales of excavators by Chinese manufacturers doubled for the fifth straight month in August year on year, another indicator of strong investment demand.

(SD-Agencies)