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.
“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.”
(Reporting by Ella Cao, Liangping Gao and Ryan Woo; Editing by Alison Williams)
