Beijing: China’s real estate sector grew faster than the overall economy in the second quarter as new home purchase restrictions in the biggest cities failed to deter buyers.
Economic output by real-estate brokers surged 8.8 per cent from a year earlier in the April-to-June period, while construction activities jumped 7.3 per cent, data from the National Bureau of Statistics showed on Saturday. The nation’s gross domestic product (GDP) grew 6.7 per cent. Other industries such as technology, health and education increased 9 per cent.
A housing recovery fueled by cheap credit has supported growth this year even as headwinds loom for developers with bloated inventories. Property sales jumped 42.1 per cent in the first half, slowing from 54.1 per cent in the first quarter after cities like Shanghai and Shenzhen tightened criteria for some homebuyers. The world’s second-largest economy is continuing its transformation toward growth led by services, which are becoming a major pillar of the economy.
Services accounted for more than half of output last year for the first time, while GDP data released on Friday showed consumption made up more than 70 per cent of the expansion. Services grew 7.5 per cent in the second quarter from a year earlier, surpassing the 6.3 per cent pace for manufacturing and 3.1 per cent for agriculture.
The financial sector expanded 5.3 per cent in the second quarter amid a sluggish stock market, slowing from the 8.1 per cent increase in the preceding three months. Lodging and catering services rose 6.8 per cent.