Land sale revenue hits three-year low

The first five months saw land sale revenue in 10 major cities in China reach a three-year low despite a rebound in the property market, E-house China R&D Institute said on Friday.

Land sale revenue in 10 major cities was 92.2 billion yuan ($14.47 billion) in the first five months, down 58.41 percent year-on-year, while turnover of commercial residential buildings in these cities was its highest in 16 months.

"Rebounding turnover in the property market and increased tax revenues from property sales can offset the decrease in land sale revenue. Local governments are still expecting supportive measures in order to increase their revenue," said the Shanghai-based institute.

Land sale revenue in 10 major cities continued to fall over the past nine months and reached 13.1 billion yuan in May, down 41 percent from the previous month or 50 percent year-on-year.

Turnover of commercial residential buildings in these cities rose 15 percent year-on-year in May, or 29 percent from the previous month.