China Property:Strong REI growth due to buoyant land sales;sales growth softening

April saw stronger land sales, with land area sold growing 13.6% y-y (vs.

    +5.0% in March), and land sales value up 84.8% y-y (vs. +22.8% in March). Weexpect land sales to remain good given low inventories. New starts alsoremained strong in April, growing 10.1% y-y (vs. +13.1% in March), with YTDnew starts up 11.1% y-y in 4M17. In particular, residential new starts were up16.6% y-y in April (vs. +22.2% in March). We believe new starts continued tobe supported by declining inventory in T3/4 cities, but we estimate full-yearnew starts growth might soften to 5% y-y due to a high base.