Economic news

China’s revenue from government land sales down 18.3% year on year

2024.07.22 04:27

BEIJING (Reuters) – China’s government posted an extended decline in land sales revenue in the first half of 2024, finance ministry data showed on Monday.

Revenue from government land sales fell 18.3% year-on-year, compared with a 14% drop in the first five months of the year.

Land sales, a key barometer tracking property sector momentum and local fiscal conditions, have fallen sharply since 2022 amid a prolonged property crisis and a sluggish economic growth.

© Reuters. FILE PHOTO: Factories and residential areas are pictured from the window of an aircraft north of Beijing July 29, 2013. REUTERS/Jason Lee/File photo

“The unsustainability of funding long-term capex with volatile land concession revenue is pushing Chinese local governments to explore alternative solutions, especially amid a structural shift in property demand,” Fitch Ratings said in a research note.

“These may include a property tax, although raising a sufficient amount is challenging.”



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