A strong growth in capital investment in China’s real estate is due to an increase in the value of land.
However, even despite the increased confidence of developers in further policies, sales slowed as cooling measures are coming into effect. Investments in real estate have grown by 10.4% in January-March 2018 compared to the same period a year earlier, according to the National Bureau of Statistics. This was in line with the growth observed in January-February 2015, which was the fastest since the first quarter of 2014, Reuters reports.
According to analysts, the main factor of the investment growth is an increase in land prices. Also, China’s efforts to get rid of the slums play a significant role. This trend accelerated in the first quarter of the year, which also led to a higher investment value of properties.
A total number of land purchase and sale transactions has soared by 20.3% in the first three months of 2018 compared to a year earlier. During the same period, a total area of the acquired plots of land has risen just by 0.5%.