The real estate sector in China is growing faster than the economy during the second quarter, after restrictions on the purchase of new homes in the largest cities have failed to stop buyers. The economic performance of Realtors rose by 8.8% yoy for the period from April to June, while construction activity jumped by 7.3%. During the same period, the gross domestic product (GDP) grew by 6.7%. Other industries, such as technology, health and education, reported growth of 9%.
The recovery of the housing sector, powered by cheap loans, has supported growth this year despite the crosswinds that face entrepreneurs due to the large supply of real estates. The property sales jumped by 42.1% in the first half, slowing from 54.1% in the first quarter, after cities such as Shanghai and Shenzhen have tightened their criteria for some buyers. The second largest economy in the world continues its transformation to growth led by services, which have become the main pillar of the economy.
Services have formed over a half from production last year for the first time as the GDP data showed that consumption contributes 70% towards enlargement. The services reported growth of 7.5% in the second quarter compared to last year, surpassing the rate of 6.3% in production and 3.1% of agriculture.
The financial sector expanded by 5.3% in the second quarter amid sluggish stock market, slowing from growth of 8.1% during the previous three months.
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