BEIJING, April 5 (Bernama) — Land sales in China slowed sharply last year as the property market cooled and the country faced economic headwinds, Xinhua News Agency reported today.
Land sales by local governments amounted to 3.37 trillion yuan (US$520.5 billion), plunging 21.6% year-on-year (yoy), it quoted a statement from the Ministry of Finance (MOF).
Sales fell yoy by 23.6% in east China, by 17.3% in central China and by 21.2% in the west.
Only a handful of cities and provincial-level regions saw sales growth, with Shenzhen rising the most, by 36.9% t yoy.
“Shenzhen’s robust land sales were mainly due to its red-hot property market and the booming economy, which pushed land prices higher,” Xinhua quoted the statement.
The northeastern port city of Dalian saw land sales fell the most, with a fall of 56.4%.
Ningbo in east China’s Zhejiang Province and Inner Mongolia Autonomous Region in the north were both down by more than half.
A total of 221,400 hectares hit the market last year, down 18.6% yoy.
Land areas for commercial use and residential development fell 24.7% and 19.1% yoy.
Land prices grew mildly last year in the 105 cities monitored by the MOF.
The price of sites for residential projects stood at 5,484 yuan per sq metre, rising 3.92% yoy.
Commercial land prices increased 2.7% from one year earlier to 6,729 yuan per sq metre.
MOF said the soft demand for land has been linked to China’s economic slowdown.
Last year, its economy grew by 6.9% yoy, the slowest annual expansion in a quarter of a century.