CHINA’S real estate investment grew faster in June than May helped by more robust construction activity and easier credit, as policymakers focused on getting the economy back on its feet after the coronavirus outbreak.

The property market has gained momentum in recent months supported by policy stimulus and as travel curbs to halt the spread of the coronavirus were lifted in most regions.

Some analysts expect the market to keep improving in the second half as infections fall, while others say a sustainable rebound may still be sometime away as consumer confidence remains soft and the government continues to crack down on speculation.

Real estate investment in June rose 8.5 percent year on year, compared with 8.1 percent growth in May, according to calculations based on National Bureau of Statistics (NBS) data Thursday.

For the January-June period, property investment returned to growth for the first time this year, rising 1.9 percent, better than a 0.3 percent fall in the first five months.

That comes as new construction starts measured by floor area increased 8.9 percent last month, compared with May’s 2.5 percent uptick.

“May and June’s data have shown the impact of the epidemic on real estate has passed, and the market will continue to heat up,” said Zhang Dawei, a Beijing-based analyst with property agency Centaline.

Funds raised by China’s property developers still fell 1.9 percent in the January-June period, but narrowed from a 6.1 percent drop for the first five months. (SD-Agencies)