(ECNS) -- China's real estate market is still in the process of restructuring, and investment into the sector remains cautious, said Sheng Laiyun, spokesman for the National Bureau of Statistics (NBS).
Data on property investment growth, area of land acquisition and volume of land deals support the fact that there is currently no sign of overheated investment, Sheng said.
Property investment from January to May increased by 7 percent year-on-year, 0.2 percentage down from January to April, and land purchase area dropped by 5.9 percent year on year. Although land transaction prices from January to May increased 4.7 percent year on year, it is slower than the growth of real estate investment, it was noted.
Data in April showed a slowdown of home price increases in first- and second-tier cities, a contrast with accelerated gains in third-tier cities, Sheng added.
The market has entered a phase of polarization and adjustment, and housing prices will continue their current trend in first- and lower-tier cities.
China will manage its real estate industry according to local conditions as the sector is still undergoing necessary structural optimization.
But Sheng added that attention should be paid to the record high prices in some cities.
