2017.08.1402:50:00UTC+00China Property Investment, Sales Slows in July

China's real estate investment growth slowed in July from the previous month, as government restrains continued to ease the property market and undermined investment.

Chinese authorities enforced cooling measures over the past year in order to deflate the housing bubble. The measures targeted speculators in the largest cities seemed to be paying dividends. However, speculators turned to smaller cities which have a huge overhang of unsold houses.

The rise in property investment, which mostly focuses on residential real estate but also involves commercial and office space, cooled to 4.8 percent in July from the previous year, against 7.9 percent in June, according to a Reuters calculation from the National Bureau of Statistics data.

Property sales measured by floor area increased by only two percent in July compared with the previous year, its softest growth since December 2015.

New construction starts measured by floor area, which implies confidence of developers, has contracted for the first time since last September, slipping seven percent from the previous year.

Real estate investment is acknowledged as an important driver for the economy in China. Some analysts sees tight easing measures to eventually pull down investment and reduce construction activity.