BEIJING, April 18 (Reuters) – Revenue from Chinese state land sales fell at a slower pace in March, the Finance Ministry said on Tuesday, as a series of policy stimulus lifted the spirits of property developers.
Income from the sale of land, the largest source of funds collected directly by local governments, fell 27% in the first three months of the year compared to the same period of the previous year, according to data from the ministry.
In March, land sales plummeted 23.2% from a year earlier, a slower decline than the January-February decline (29%), according to Reuters calculations based on ministry data.
“With the implementation of a series of policies introduced by the country to support the stable and healthy development of the real estate market, the market is experiencing some positive changes, but it is still in the process of gradual recovery,” said Xue Xiaoqian of the Ministry of Finance, during a press conference in Beijing.
The real estate sector plunged sharply last year, but is now being boosted by a series of measures aimed at developers and buyers. Official data for March showed that house prices rose at the fastest pace in 21 months, although property investment continued to decline.
Homebuyers are regaining confidence in developers, and “if pre-sold homes are digested by the market, developers should be able to get new cash flow from home sales in 2024,” said Iris Pang, chief economist. of ING for Greater China.
China’s economy grew at a faster-than-expected pace in the first quarter as the end of tight COVID restrictions pulled businesses and consumers out of the crippling disruptions of the pandemic, though headwinds from a slowdown World Cup points to a bumpy ride ahead.
(Reporting by Liangping Gao and Ryan Woo; Editing by Kim Coghill and Raju Gopalakrishnan, Spanish editing by José Muñoz)
