Realty sector to remain relatively stable

Real estate investment remained high in the first half of this year. The total real estate investment nationwide from January to June was 6.16 trillion yuan ($892.89 billion), up 10.9 percent year on year. In June alone, real estate investment reached 1.55 trillion yuan, an increase of 31.01 percent from the previous month, indicating high market investment enthusiasm.

The reason for this high enthusiasm was reflected in property developers expediting real estate projects, which was aimed at accelerating payment collection. Along with the steadily increasing newly started real estate construction, investment in the realty sector grew rapidly. In June, newly started real estate construction area was 257 million square meters, up 21.17 percent month-on-month.

But most regions, including eastern, central and western China, witnessed a decline in investment since the peak of April, suggesting the high enthusiasm for real estate investment is concentrated mainly in newly constructed projects, which can be hardly maintained in the future.