Chinese real estate investment posted strong ratings, despite the cooling down of a previously hot economy. To date, investments were rated around the 9.7 percent range during the first months of this year, as compared to a year earlier, data showed.
Reuters reported that, in contrast, the growth slowed down near the end of this year. It opened with a 9.9 percent gain at the start, and gradually went down as months passed by. Property sales, meanwhile, grew by 2.9 percent during the same period. It was .7 percent better from last year, where growth was estimated at around 2.2 percent, as collected by the National Bureau of Statistics (NBS).
Construction starts by floor area spiked up to 16.3 percent, while it was much faster the previous year, posting ratings of 16.4 during the months of January-September. Chinese real estate developers, anticipating a slowdown, posted funds growth to the tune of 7.7 percent. It was a .1 percent decline from last year's 7.8 percent in funding.
Decline is not something to balk at, but there's no need for the Chinese government to panic just yet. October's FDI ratings in China increased to 7.2 percent in year-on-year figures, enough for a 64.46 billion yuan forecast, according to the Commerce Ministry.
Daily Mail UK reported on the foreign investment relations between the US and China, who are currently locked in a trade dispute. US foreign direct investment was interestingly up by about 4.1 percent when compared to the same period a year earlier. Non-financial outbound direct investment (ODI), meanwhile, posted a rise of 2.8 percent year-on-year worth $89.57 billion.
All of these investments were registered as foreign direct investments (FDI), coming in to China from other countries-not just the US. During the first ten months of the year, Chinese FDI rose to 3.3 percent totalling 701.16 billion yuan ($101.10 billion) better than last year. The Chinese Ministry of Commerce revealed the figures to reporters.
The rise could be connected to foreign investors looking for robust real estate markets to invest in. With China's property investment experiencing a boom, it could confirm a trend that had been seen recently in Asian real estate markets-that it was on the rise, and it could also become a new market that China could rely on. It could stem the tide over while China's economy levels out, despite the ongoing spat between the country and Trump's government.
