China’s land sale revenue slumps 13 percent

Land sale revenue across 130 Chinese cities has dropped 13 percent year-on-year in 2011 to ¥1.86trn, said property research group China Index Academy late on Wednesday.

In contrast, countrywide land sales revenue in 2010 amounted to ¥2.9trn, said the Ministry of Finance.

China’s government had hoped that curbing soaring real estate prices would create more house sales but uncertain house prices have scared away new home buyers.

In December year-on-year sales dropped by 30 percent, China Vanke, the nation’s biggest developer by revenue said. Over 2011 three times as many land auctions, 900 in total, failed last year, according to the latest released figures.

The fall in land sales has now triggered a slowdown in sales of goods including furniture and white goods, said economists.