BEIJING: 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 per cent year-on-year, compared with a 14 per cent 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."