China: Real estate investment up 20.2%
The amount of money being invested in China’s commercial real estate has reportedly risen by over 20% within the first quarter of 2013, compared to the same period last year, according to a recent economics report conducted by the National Bureau of Statistics in China.
Within the first two months of 2013, investment increased by 20.2% in the troubled market, which has undergone dramatic cooling measures by the Chinese Government who perceive the rapid expansion as a prequel to its collapse.
Additionally, revenues generated from property sales in the country increased by a staggering 77.6% throughout January and February in 2013. China’s Central Government responded quickly to the figures, requesting local governments levy a 20% capital gains tax and higher down payments for second-home buyers.
“Investment in fixed assets enjoyed relatively fast growth and sales in real estate increased substantially.”- Spokesperson for the National Bureau of Statistics of China.
Commercial floor space sold on the market reached 208.98m sq ft in the first quarter of 2013, and represented a 35.3% increase from the same time last year, while the sale of commercial buildings was up by 51.3% from last year’s Q1 figures.
[caption id="attachment_13836" align="alignright" width="252"] Jin Mao Tower, Shanghai, China[/caption]
While the numbers may make for impressive reading, they reflect a complicated and volatile economic environment. China’s Central Party Committee and State Council have said their efforts are geared towards safeguarding market stability and for it to exhibit safe and efficient growth.
Overall, the quarterly report found China’s national economy to have realised steady development, which was attributed to a proactive fiscal policy and prudent monetary policy undertaken by the government in recent times.