CHINA’S real estate investment rose at the fastest pace in 16 months in August, supported by robust sales, as the property market helped underpin the post-COVID economic recovery.

Real estate investment in August rose 11.8 percent from a year earlier, quickening slightly from 11.7 percent seen in July, according to calculations based on data from the National Bureau of Statistics yesterday.

For the January-August period, property investment grew 4.6 percent on an annual basis, faster than a 3.4 percent uptick in the January-July period.

China’s property market was among the first to recover after the economy reopened this year, thanks to cheaper credit and a relaxation of urban residential curbs, with some analysts warning of a potential bubble in a handful of big cities.

But top government officials are keen to keep property prices in check, reiterating its overarching policy of “houses are for living, not speculating” and keeping most of its real estate curbs in cities across China in place.

Evergrande, China’s second-biggest property developer, stepped up price discounting this year to clear a growing pile of unsold homes. Property developers have faced sluggish demand in smaller cities as the pandemic hit people’s incomes.

Property sales by floor area rose 13.7 percent from a year earlier in August, faster than July’s expansion of 9.5 percent, calculations showed.

However, growth in new construction starts measured by floor area eased to 2.4 percent in August, from the 11.3 percent increase in July.

Funds raised by China’s property developers grew 3 percent, compared with a 0.8 percent growth for the first seven months of 2020.

(SD-Agencies)