China's property investment slightly cools, sales booming

Potential homebuyers examine a property project model in Yichang, Hubei province, June 4, 2016.[Photo/VCG]

BEIJING - Growth in China's real estate investment slightly cooled in the first five months of the year, while property sales continued to boom, official data showed Monday.

Growth in property investment from January to May slowed to 7 percent, following a 7.2-percent gain posted for the first four months, according to the National Bureau of Statistics (NBS).

Investment in residential property grew 6.8 percent in the first five months, and new property construction projects jumped 18.3 percent year on year, the NBS data showed.

While real estate investment showed tentative signs of slowing, property sales from January to May were positive.

In floor terms, property sales jumped 33.2 percent in the first five months, slightly lower than the 36.5-percent gain in the first four months.

Sales revenue surged 50.7 percent in the first five months, compared with the 55.9-percent gain seen in the four months.

Slowing property investment, which used to be a main driver of the Chinese economy, is seen as a drag on overall economic growth.

In recent months, the sector has shown signs of improvement, with home prices rising in big cities including Beijing, Shenzhen and Shanghai.

But markets in smaller cities remain subdued due to a supply glut, and the government is making destocking its top priority.