Latest News:  
Beijing   Sunny    34 / 23 ℃  City Forecast

English>>China Business

Another realty boom not needed

By Mark Williams  (China Daily)

16:06, August 29, 2012

(Photo/China Daily)

These have been a few disappointing months for anyone watching China's economy. The general view at the start of the year was that economic growth was on the point of bottoming out. Instead, the economy continued to slow down in the second quarter. There was still no sign of a rebound in growth in the data for July.

In the meantime, the government has cut interest rates, relaxed constraints on bank lending and approved a host of new infrastructure projects to turn the economy around. But the government has continued to insist that its controls on the property market will remain in place.

Real estate investment remains in the doldrums as a result. In July, developers launched 25 percent fewer projects year-on-year. The contrast with the situation three years ago is stark. A rebound in real estate investment of the scale we saw then would be enough to lift China's growth over the next year by 2 percentage points. If everything else remained the same, this alone would be enough to push GDP growth back above 9 percent.

The failure of the economy to turn around prompts the question: Is a strong economic recovery even possible without strong growth in the real estate sector?

It is hard to overstate the property sector's importance to the wider economy and even to the rest of the world. China has built more than 90 million properties in the past 15 years, enough to house the combined populations of Germany, France and the United Kingdom. Along the way, construction activity has boosted economic growth and been a key source of jobs for migrant workers. When exporters were struggling in 2009, the surge in construction provided alternative work for millions of people who were laid off.


【1】 【2】 【3】



News we recommend:
Prices fly for Angry Birds' merchandise Real Economy Faces Real Challenges Spirited into the world of e-commerce
E-shopping fuels domestic consumption Lake cleanup pays off big with tourist dividends China's beauty industry profits from a makeover
Taxing times for China's tax reformers  Experts divided on yuan’s future [Audio]Soccer in China Part III: The Business Side

Email|Print|Comments(Editor:李倩、厉振羽)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Court accused of forging Walmart docs in Dalian

  2. Childhood robbed by war

  3. Lake cleanup pays off big with tourist dividends

  4. China's Taoism shrine to mark 600th anniversary

  5. Andy Lau covers Esquire magazine

  6. Kitty Zhang Yuqi covers Cosmo Bride

Most Popular

Opinions

  1. Red moon threat reflects hollow fears on space
  2. Japanese diplomat in letter mission
  3. Editorial: Erring on side of caution
  4. Commentary: Transition of economy starts
  5. Chinese abroad must have better protection
  6. 'Great China' in the eyes of a Serbian journalist
  7. Italy's bonds sales key to economic strength
  8. Capital market needs clearing up
  9. Public needs to see where tax money goes
  10. Should China boycott Japanese goods?

What's happening in China

Local court accused of counterfeiting withdrawal notice in Dalian Wal-Mart case

  1. Guangzhou to start garbage classification
  2. Schools to offer classes in starting own businesses
  3. Writers, publishers recognized for work on China
  4. Tourists stumped by visa rules
  5. Public demands truth in Peking University scandal

China Features

  1. Regimen: spleen-friendly diets during White Dew
  2. Watch out hay fever during Bai Lu
  3. Man pricked by syringe with HIV
  4. Large windmill in northern Shaanxi Plateau
  5. Japan aids armed forces of China's neighbors

PD Online Data

  1. Ministry of Water Resources
  2. Ministry of Railways
  3. People's Bank of China
  4. Ministry of Health
  5. Ministry of Culture