The figure exceeded analyst forecasts that the world second largest economy expected to grow 4.5 percent year-on-year in July-September, but lagged far behind the 6.3 percent growth in the previous three months.
The country faced a “severe and complex international environment and challenging tasks in promoting reforms, development and stability at home” in the first three quarters of 2023. National Bureau of Statistics said.
The real estate sector, which has long accounted for a quarter of the country’s gross domestic product, supports thousands of businesses and is a major source of employment.
The sector enjoyed staggering growth for decades, but recent troubles from major developers including Evergrande and Country Garden are now fueling buyer distrust as homes sit unfinished and prices plummet.
Country Garden, one of China’s largest real estate companies and long believed to be financially sound, last month failed to repay interest on a loan totaling $15.4 million.
The group has been granted a 30-day grace period, which expires on Wednesday, and is at risk of default if it fails to make repayments.
Authorities have increased incentives for property purchases in recent months to revive the sector, but buyers remain cautious.
Households are watching their spending in a context of slow growth, which in turn has hurt consumption.
A week-long national holiday in October has nevertheless helped boost spending on tourism and other services.
“The Chinese economy has shown signs of stabilization,” Nomura analyst Ting Lu said in a note.
Retail sales, the key indicator of household consumption, rose 5.5 percent year on year in September, according to official figures published by the NBS on Wednesday.
