China's FAI up 5.8% during Jan-Oct, property down 8.8% y-o-y

China's fixed asset investment (FAI) increased by 5.8% on year to Yuan 47.1 trillion ($6.7 trillion) over January-October, according to the latest release by the country's National Bureau of Statistics (NBS) on Tuesday morning. Within the total, that in the domestic property market declined by 8.8% on year to Yuan 11.4 trillion.

During the first 10 months, privately-owned enterprises contributed Yuan 25.8 trillion or 54.8% of China's total FAI, up 1.6% on year. The country's tertiary industry attracted the most funding among the three industrial sectors, with the total increasing by 3.7% on year to Yuan 31 trillion. And that in the infrastructure sector also rose by 8.7% on year.

Among the total funding in the property sector over the past 10 months, about Yuan 8.7 trillion went into residential housing projects, or 8.3% lower on year. New land leased to Chinese property developers slumped by 53% on year to 74.3 million sq m, according to the NBS data.

Meanwhile, China's total area of newly-launched property projects plunged by 37.8% on year to 1.04 billion sq m over January-October, with residential housing projects losing 38.5% on year to 759.3 million sq m.

Over January-October, China's property sales added up to 1.11 billion sq m, down by 22.3% on year. Within this, residential housing sales dropped by 25.5% on year. By region, East China ranked the top in sales with 460 million sq m, though the volume was still down by 22.6% on year, the data showed.

By end-October, inventories in Chinese property market grew by 9% on year to 547.3 million sq m. The property market index calculated by NBS remained in the negative zone last month at 94.7, as against 94.9 in September.

Written by Carly Chen, chenziyi@mysteel.com

This article has been published under an article exchange agreement between Mysteel Global and SteelMint.