Hainan ranks No. 1 among Chinese provinces in terms of dependency on property investments for local economic growth, according to China Business News.
Real-estate investments contributed 36 percent to Hainan’s gross domestic product (GDP) growth in the first half of this year, the report said, citing data compiled by the paper.
Guizhou and Yunnan take the second and third spots, with property investments contributing 27 percent and 25 percent of their GDP respectively, it said.
Top ten regions that rely on the property sector include Chongqing, Fujian, Liaoning, Ningxia, Anhui, Zhejiang and Sichuan, according to the report.
The data shows that coastal and tourist provinces depend most on the real-estate industry to boost economic growth, analysts were quoted as saying. That’s why some local governments have taken action to protect the property market amid falling prices, they said.
For instance, Hainan and Fujian have removed local restrictions on property purchases.
In terms of property sector’s contribution to fixed-asset investments, Shanghai ranked first with 55 percent, followed by Beijing and Hainan with 52 percent and 46 percent respectively, the paper said.
Peng Peng, deputy chairman of the Guangdong Research Institute on Reform and Development, was quoted as saying that first-tier cities like Beijing and Shanghai have entered into the later stage of industrialization. So, fixed-assets investments there are relatively lower as there is less room left for infrastructure construction.
Given this situation, a higher ratio of real-estate does not mean that their economies rely heavily on the sector, he said.
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