China's real estate industry posted a visibly slower growth at the first half this year, with the top players remaining on top. Their leadership and market share remained as competition became fierce, an industry report has said. Between the months of January to June, property sales by the top 100 developers have totaled $566 billion, Shine reported.
The property sales have increased year-on-year by 4%, enough to be compared with the 32% growth that was seen in the first half of 2018. These figures were collected by the CRIC, a subsidiary of E-House China and also a leading real estate data application service provider in the country. Martin Ding, chief executive officer of E-House (China) Enterprise Holdings Ltd., also cleared up this fact.
According to the chief executive, outside pressure from trade disputes and the slowing economy culminated into very moderate growth in property sales. During the six-month period, this trend was observed to continue and the analysts expected this to result in the "weak momentum." They further expect it to last throughout the year, with a major rebound to start in the latter part of the year.
There is something to be wary about the pressures that the Chinese economy is feeling, however, and it may impact its real estate market. Some analysts say that Beijing may turn again to some of its old policies in the face of a slowing economy. Some suggested scenarios had been to build more infrastructure, as well as ease property controls.
CNBC reported that the world's second-largest economy had a growth spurt of 6.2% for the second quarter. Compared to official data from China, this has been considered a slow year-on-year increase for a quarter in at least 27 years since the data had been tracked. Contributing factors have been the slowdown of the global economy and China's trade dispute with the United States.
It might require stimulus packages to jumpstart this sluggish economy, analysts expect. They also expect a measure of support, some of which had already been delivered. The support is on increased infrastructure spending and, to some extent, the increase in borrowing.
With this expectation, however, come some positive results. For one, investors have still remained bullish about the Chinese real estate market, despite real concerns on the economic slowdown, as well as widespread uncertainty surrounding the global economy, according to Colliers International. Perhaps China is still in good hands, after all.
