China real estate shakeout leads GDP lower

Wednesday, 15 April 2015

China’s March data dump is ugly for real estate. The only positive data point is that sales were up sharply from the first two months of the year, but the bounce was to a level below any single month in 2014. Real estate investment year to date is up 8.5% over 2014, but the increase in March was only 6.5%.

More from the NBS, Real Estate Investment Growth Rate:

Land purchases by developers (area):

New Home Sales By Area (yellow) and Yuan (blue):
Developer Capital:

In a word: ugly.

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.