Property back as pillar of China's economic growth: analyst

Residential buildings under construction in Shanghai on March 21.
Residential buildings under construction in Shanghai on March 21.PHOTO: REUTERS

SHANGHAI (Bloomberg) - Property is once again becoming the bright spot in a fragile Chinese economy.

Real estate investment expanded 7.2 per cent in the January-April period, the fastest pace in 13 months, while fixed-asset investment missed expectations with slower growth of 10.5 percent, as did retail sales and industrial production.

The ongoing property rebound, which is supporting construction, will underpin economic growth through the third quarter, UBS Group AG chief China economist Wang Tao wrote in a note Monday.