China property busted but more railway spending

Some interesting headlines this morning from China via ForexLive:

China Securities Journal front page editorial (via MNI):

• China’s property boom has probably reached its peak
• Turning points seen in second- and third-tier cities
• Says good days in core cities may continue for a while
• Said housing investment as a percentage of China’s GDP is already at 9% in 2013, the same level as when property markets in Japan and South Korea hit their peaks
• Said demand for new houses in urban areas had also reached a turning point as the number of migrants from rural areas to the cities has already started falling

And from another CSJ story:

• New home sales in Beijing reached only 200 units during the May 1st holiday, its lowest level since 2009.
• According to data from Homelink, a major Beijing-based property agent, Beijing’s house transactions in April fell 18.4% m/m and 18.1% y/y, with average prices down more than 10% from March
• Government online house transaction registration data showed house sales in Shanghai fell 27.35% m/m in April and down 23.35% y/y
• While in Guangzhou, house sales were down 7.5% y/y and 16.7% m/m.

But!

From the China Economic Information Daily via MNI:

• China Railway Corp, the government-owned sole operator of the country’s railway system, has decided to boost its full-year fixed asset investment target to CNY800 billion, from CNY700 billion set at the beginning of the year.
• The move was in response to a State Council requirement calling for higher railway investment as part of the government’s efforts to support economic growth.

More foot on accelerator and brake.