THE country’s property investment hit a two-year low in December even as it grew at a solid pace in 2019, adding to recent signs of a slackening in the sector.

Real estate investment, which mainly focuses on the residential sector but includes commercial and office space, increased 9.9 percent in 2019 from the year-earlier period, down from 10.2 percent in the first 11 months but still outpaced a 9.5 percent gain in 2018.

In December alone, year-on-year growth slowed to 7.3 percent from 8.4 percent in November, the weakest pace since December 2017, according to media calculations based on data released by National Bureau of Statistics (NBS) on Friday.

New bank lending in China hit a record of 16.81 trillion yuan (US$2.44 trillion) in 2019, while China’s central bank has announced eight cuts in banks’ reserve requirement ratio (RRR) since early 2018.

Funds raised by China’s property developers grew 7.6 percent in 2019 year on year, NBS data showed, faster than the 7 percent pace in the first 11 months.

Property developers kicked off the new year with a strong pipeline of bond issuance, in particular for long-tenor notes, taking advantage of easier regulatory approvals and robust market demand.

But analysts say investment in actual construction has slowed notably as developers exercised caution, although they appear still eager to bid for land.

Measured by floor area, new construction starts rose 7.4 percent in December from a year earlier, recovering from a 2.9 percent decline in November when it hit the worst level seen in more than two years, according to media calculations.

Land sales by floor area in 300 major cities tracked by China Index Academy fell 1 percent year on year in 2019, while transaction value surged 19 percent.(SD-Agencies)