* Q1 property investment +9.1 pct y/y, housing starts +11.6
* Sales slow to +19.5 pct vs +25.1 pct in Jan-Feb
* Investment rebounds despite intensified curbs
* Stats dept expects to see effects of curbs in months ahead
By Kevin Yao and Yawen Chen
BEIJING, April 17 Real estate investment in
China remained robust in the first quarter from a year earlier,
official data showed on Monday, as the pace of new construction
quickened, despite intensified government cooling measures.
Growth in property investment, which includes residential,
commercial and office spaces, accelerated to 9.1 percent from
8.9 percent in the first two months of 2017, the National Bureau
of Statistics (NBS) said on Monday.
In March alone, property investment growth rose to 9.4
percent, a Reuters' calculation based on NBS data showed.
Most analysts agree an overheating property market poses the
single biggest risk to China's economic growth, with
increasingly tough government measures to cool soaring prices
raising the risk of a nasty crash.
Policymakers, however, expect to see some moderation in
property activity going forward.
"Because the latest round of cooling measures came out after
March 17, their impact on the entire economy including home
prices may show in April or later," Mao Shengyong, a spokesman
from China's statistics bureau said at a briefing on Monday.
He added houses are for habitation, not for speculative
New construction starts measured by floor area, a telling
but sometimes volatile number that gauges developers'
confidence, also quickened to 11.6 percent in the first three
months of the year, comparing with a 10.4 percent rise in first
two months, the NBS data showed.
Robust investment and new construction starts in the first
quarter defied a slowing trend in sales measured by floor area
as more government curbs take effect. Sales grew 19.5 percent in
the January-to-March period from a year ago, down from 25.1
percent in the first two months of the year.
In March, sales by floor area fell to 14.7 percent from a
year earlier, National Bureau of Statistics (NBS) data showed.
Property sales recorded their strongest annual growth in
seven years in 2016 with an annual gain of 22.5 percent, thanks
to a furious property boom in top-tier cities, which eventually
spilled over to smaller neighbouring cities.
But that has led to the biggest wave of tightening of home
purchase and lending rules in recent weeks since October, as
China's red-hot property market picked up pace in February after
price gains slowed in previous months.
Real estate investment, which directly affects 40 other
business sectors in China, is considered a crucial driver for
the world's second-largest economy. Regulators have pledged to
keep the property market stable in 2017.
At least 50 Chinese cities have slapped tougher cooling
measures to limit price gains since mid-March, following
Beijing's unprecedentedly harsh curbs that hiked downpayment
ratios for second homes to as much as 80 percent.
China's central bank has also urged banks to strengthen
mortgage risk management, and crack down on market
irregularities such as making fake divorces to skirt high
Some of the more draconian government policies included
requiring newly bought homes to be held for at least two to
three years before they could be sold, a measure against
short-term speculation and hailed by analysts as a "policy
While home prices soared in large cities, many smaller
cities still face a gloomy inventory overhang, even as buyers
and developers are increasingly being pushed into smaller
markets due to curbs in the top-tier cities.
Growth in inventory floor area by end March across China was
6.4 percent lower than one year earlier, compared with a fall of
4.6 percent in the January-to-February period.
(Reporting by Kevin Yao and Yawen Chen; Editing by Sam Holmes)