China's revenue from government land sales down 18.3% year on year

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)