China's property investment cools in H1

China's property investment fell 10.1 percent in the first six months of 2024 from a year earlier, flat with the figure in the first five months, as the policymakers' efforts to support the ailing sector took time to revive the demand. 

Sales area of new properties slumped 19 percent year-on-year in the first half of 2024, narrowing from a 20.3 percent decline in the first five months, data from the National Bureau of Statistics showed on Monday. 

New construction starts measured by floor area fell 23.7 percent year-on-year during the January-June period, after a 24.2 percent drop in the first five months. 

Funds raised by China's property developers were down 22.6 percent from a year earlier in the first six months after a 24.3 percent fall in January-May. 

Policymakers have pivoted toward more aggressive measures, including more direct government balance sheet support for resolving a housing "stock" supply issue, and a step-up in nationwide demand-side easing.

Analysts believe the successful implementation of ongoing policies will likely help gradually rein in the ongoing decline in the housing market.

"The announced policies, combined with potential further home purchase relaxations, should facilitate faster market clearing, support liquidity among developers, restore homebuying confidence and (with a lag) improving housing investment,” said Robin Xing, chief China economist at Morgan Stanley.