THE country’s property investment posted its weakest growth in six months in June as developers faced fresh curbs and tighter funding conditions, in a sign that one of the economy’s key drivers was losing steam.

Growth in real estate investment, which mainly focuses on residential but also includes commercial and office space, cooled to 8.4 percent in June year on year, compared with a 9.8-percent rise in May, according to media calculations based on data from the National Bureau of Statistics (NBS) released yesterday.

Authorities have sought to defuse a housing bubble since 2016, as part of a broader effort to temper financial risks stemming from years of debt build-up.

But policymakers have also been careful not to trigger a sudden crash, wary of ramifications on an already slowing economy.

China’s government agencies have initiated a fresh round of crackdowns on property irregularities in 30 major cities from July to end-December, as new home prices posted their fastest growth in nearly a year in May.

Property sales by floor area rose 4.5 percent in June from a year ago, down from an 8-percent gain in May, calculations based on NBS data showed.

In the first half of 2018, real estate investment rose 9.7 percent from the same period a year earlier, official data showed yesterday.

That compared with a 10.2-percent gain in the first five months of the year.

Property sales measured by floor area grew 3.3 percent in the January-June period from a year earlier, up from an increase of 2.9 percent in the first five months, data from the NBS showed.

New construction starts measured by floor area were up 11.8 percent in the period, compared with 10.8 percent in the January-May period, the NBS data showed.

Real estate is a key driver of economic growth in China but is expected to moderate as the government clamps down on property speculation following a more-than-two-year boom.

China’s Housing Ministry has said it would restrict subsidies to cities with hot property markets for new projects to tear down and redevelop shantytowns, a significant source of property demand that had led to a buying frenzy, especially in smaller cities.

China has injected hundreds of billions of dollars of policy loans into redevelopment of urban shantytowns, boosting cash compensation to residents to purchase a new home when their existing home was demolished.

Developers also face a tougher funding environment as China looks to rein in excessive debt financing overseas and a de-risking campaign significantly raises funding costs onshore.

In a sign of fading confidence among property developers, new construction starts measured by floor area rose 15 percent in June from a year earlier, slowing from 20.5 percent in May, calculations showed.(SD-Agencies)