BEIJING (Oct 18): China's new construction activities continue to slow down for a sixth straight month due to cash-strapped developers putting a halt to their developments as the government tightens the regulations on borrowing, reported Reuters.
The report, citing the January-September data released by the National Bureau of Statistics, said the new construction in September slumped 13.54% year-on-year.
This is also the longest downturn since the country faced declining construction sector growth in March - August in 2015.
The report noted that since the sector recovered in 2016, developers are borrowing heavily to build more homes. However, as the borrowing regulations tighten up this year, many of them are facing cash flow problems, thus affecting the sector’s activities.
Property sales by floor area dropped 15.8% in September, down for a third month, according to Reuters calculations based on the statistics bureau's data.
Get the latest news @ www.EdgeProp.my
Subscribe to our Telegram channel for the latest stories and updates