MIL-OSI China: National Real Estate Development and Sales in the First Seven Months of 2021

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Source: National Bureau of Statistics of China

1. The completion of real estate investment

 

From January to July, the national investment in real estate development was 8,489.5 billion yuan, a year-on-year increase of 12.7 percent; it was 16.5 percent higher than that from January to July 2019, with an average growth of 8.0 percent in the two years. Among them, the residential investment was 6,398 billion yuan, an increase of 14.9 percent.

 

 

From January to July, the investment in real estate development in the eastern region was 4,530.6 billion yuan, a year-on-year increase of 11.5 percent; the central region invested 1,772 billion yuan, an increase of 20.0 percent; the investment in the western region was 1,871.7 billion yuan, an increase of 10.0 percent; and the investment in northeast China was 315.2 billion yuan, an increase of 8.1 percent.

 

From January to July, the housing construction area of real estate development enterprises was 8,918.8 million square meters, a year-on-year increase of 9.0 percent. Among them, the residential construction area was 6,310.72 million square meters, an increase of 9.4 percent. The new construction area of houses was 1,189.48 million square meters, down 0.9 percent. Among them, the newly started residential area was 884.74 million square meters, an increase of 0.4 percent. The completed housing area was 417.82 million square meters, an increase of 25.7 percent. Among them, the completed residential area was 301.25 million square meters, an increase of 27.2 percent.

 

From January to July, the land acquisition area of real estate development enterprises was 87.64 million square meters, a year-on-year decrease of 9.3 percent; the land transaction price was 512.1 billion yuan, down 4.8 percent.

 

2. Sales of Commercial Buildings

 

From January to July, the sales area of commercial housing was 1,016.48 million square meters, a year-on-year increase of 21.5 percent; it was 14.5 percent higher than that from January to July 2019, with an average growth of 7.0 percent in the two years. Among them, the sales area of residential buildings increased by 22.7 percent, the sales area of office buildings increased by 6.3 percent, and the sales area of commercial business houses increased by 3.8 percent. The sales volume of commercial housing was 10,643 billion yuan, an increase of 30.7 percent; it was 28.0 percent higher than that from January to July 2019, with an average growth of 13.1 percent in the two years. Among them, residential sales increased by 33.1 percent, office building sales increased by 9.1 percent, and commercial business housing sales increased by 5.0 percent.

 

 

From January to July, the sales area of commercial houses in the eastern region was 428.41 million square meters, a year-on-year increase of 24.1 percent; sales reached 6,194.3 billion yuan, an increase of 36.7 percent. The sales area of commercial housing in the central region was 283.59 million square meters, an increase of 27.1 percent; sales reached 2,142.2 billion yuan, an increase of 33.4 percent. The sales area of commercial houses in the western region was 269.65 million square meters, an increase of 14.3 percent; the sales volume was 2,015.6 billion yuan, an increase of 16.3 percent. The sales area of commercial housing in northeast China was 34.83 million square meters, an increase of 8.8 percent; sales reached 290.9 billion yuan, an increase of 6.9 percent.

                         

At the end of July, the area of commercial housing for sale was 508.64 million square meters, 2.15 million square meters less than that at the end of June. Among them, the area for sale of residential buildings decreased by 2.7 million square meters, the area for sale of office buildings decreased by 260,000 square meters, and the area for sale of commercial business houses increased by 190,000 square meters.

 

3. Sources of Funds for Real Estate Development Enterprises

 

From January to July, real estate development enterprises paid in 11,897 billion yuan, a year-on-year increase of 18.2 percent; it was 19.2 percent higher than that from January to July 2019, with an average growth of 9.2 percent in the two years. Among them, domestic loans amounted to 1,540.2 billion yuan, down 4.5 percent; the utilized foreign capital was 4.4 billion yuan, down 44.4 percent; self-raised funds amounted to 3,553.3 billion yuan, an increase of 10.9 percent; deposits and advance receipts were 4,539.8 billion yuan, an increase of 38.3 percent; personal mortgage loans reached 1,895.3 billion yuan, an increase of 17.0 percent.

 

 

4. National Real Estate Climate Index

 

In July, the real estate development climate index (referred to as “national housing climate index”) was 100.98.

 

 

Investment in Real Estate Development for January-July

 

Indicators

Absolute

Value

Growth Rate

Year-on-Year

(%)

     

 Investment in Real Estate (100 million yuan)

84895

12.7

  Of which: Residential Buildings

63980

14.9

      Office Buildings

3383

3.7

      Buildings for Commercial Business

7133

2.0

 Floor Space under Construction (10,000 sq.m)

891880

9.0

  Of which: Residential Buildings

631072

9.4

      Office Buildings

34823

2.6

      Buildings for Commercial Business

84677

0.1

 Floor Space of Houses Newly Started (10,000 sq.m)

118948

-0.9

  Of which: Residential Buildings

88474

0.4

      Office Buildings

2948

-19.9

      Buildings for Commercial Business

8317

-13.6

 Floor Space of Buildings Completed (10,000 sq.m)

41782

25.7

  Of which: Residential Buildings

30125

27.2

      Office Buildings

1413

17.1

      Buildings for Commercial Business

3832

9.9

 Land Acquisition Area (10,000 sq.m)

8764

-9.3

 Value of Land Transactions (100 million yuan)

5121

-4.8

 Floor Space of Commercial Buildings Sold (10,000 sq.m)

101648

21.5

  Of which: Residential Buildings

90598

22.7

      Office Buildings

1676

6.3

      Buildings for Business Use

4473

3.8

 Sales of Commercial Buildings (100 million yuan)

106430

30.7

  Of which: Residential Buildings

96747

33.1

      Office Buildings

2405

9.1

      Buildings for Commercial Business

4869

5.0

 Floor Space of Commercial Housing for Sale (10,000 sq.m)

50864

0.3

  Of which: Residential Buildings

22862

-2.9

      Office Buildings

3714

-2.2

      Buildings for Commercial Business

12799

-1.6

 Sources of Funds for Real Estate Development Enterprises

 (100 million yuan)

118970

18.2

  Of which: Domestic Loans

15402

-4.5

      Foreign Investment

44

-44.4

      Self-raising Funds

35533

10.9

      Deposits and Advance Payments

45398

38.3

      Personal Mortgage

18953

17.0

     

 

Real Estate Investment in Eastern, Central and Western Regions for January-July

 

Regions

Investment

(100 million yuan)

 

Growth Rate Y/Y (%)

 

Residential Buildings

Residential Buildings

         

National Total

84895

63980

12.7

14.9

Eastern

45306

33231

11.5

13.3

Central

17720

14330

20.0

23.7

Western

18717

14002

10.0

11.8

Northeastern

3152

2417

8.1

7.6

         

                                                   

Sales of Commercial Buildings in Eastern, Central and Western Regions for January-July

 

Regions

Floor Space of Commercial Buildings Sold

Sales of Commercial Buildings

Absolute

Value

(1000 Sq.m)

Growth Rate Y/Y (%)

Absolute

Value

(100 million yuan)

Growth Rate Y/Y (%)

 

 

 

 

 

National Total

101648

21.5

106430

30.7

Eastern

42841

24.1

61943

36.7

Central

28359

27.1

21422

33.4

Western

26965

14.3

20156

16.3

Northeastern

3483

8.8

2909

6.9

         

 

Annotations:

 

1. Explanation of Indicator

 

The total investment in real estate development this year: refers to the investment of all construction projects for housing, land development projects, public welfare construction and land acquisition costs in the reporting period. The index is cumulatively statistical data based on the principle of image progress.

 

Area of commercial buildings sold: refer total areas sold of new commercial buildings in the contract during the reporting period (i.e. area of floor space designated in the formal contract signed by both sides). The indicator is cumulative data.

 

Value of commercial buildings sold: refers to the total contracted vale of new commercial buildings for sale during the reporting period (i.e. the total value of sales for selling of commercial building as designated in the formal contract signed by both sides). This indicator is cumulative data, as well as the sale of floor space of commercial buildings.

 

Saleable area of commercial housing: refers to the construction area of commercial housing that has been completed for sale or rental at the end of the reporting period, including the building area completed in previous years and completed in the current period, but does not include the completed demolition and reconstruction, unified construction, public supporting buildings, self-use and revolving houses of real estate companies that cannot be sold or leased area of rental housing.

 

 The sources of funds for real estate development enterprises in the year: refers to various currencies and sources of real estate development funds actually available by the real estate development enterprises in the reporting period. Specifically, it includes domestic loans, foreign investment, self-raised funds and other funds. The index is cumulative data.

 

Floor space of buildings under construction: refers to the total floor space of all buildings by the real estate development enterprises during the reference time. Including floor space newly started in current year, floor space of continued construction of the building from the former period, floor space of stopped or postponed in the previous period but recovered in current year, floor space completed during current year, and newly started floor space in current year but postponed. Floor space under construction of multi-story buildings refers to the total floor space of all stories.

 

Floor space of houses newly started: refers to floor space of houses newly started by the real estate development enterprises during the reference time, the unit project as the accounting object. Not including continued construction area of housing which started in the previous period, and restarted construction area in the current year but stopped or postponed in the previous period. Specific due date is subject to starts to housing officially began ground-breaking gouge (ground treatment or permanent piles). Floor space of houses newly started refers to the entire floor spaces of whole building; the calculation cannot be separated.

 

Floor space of buildings completed: refers to housing construction during the reporting period have been completed in accordance with design requirements, achieved to living and conditions of use, acceptance of accreditation standards or to the final acceptance, total building areas could formally hand over to be used.

 

Land acquisition area: refers to land area by the real estate development enterprises in the year through various ways to obtain land.

 

Value of land transactions: refers to final amount of transactions of land use rights by the real estate development enterprises. In the primary land market, refers to the final section of land allocation, “auction” price and sale price; the secondary land market, refers to the finalized contract price on land transfer, lease, mortgage, etc. Price of land transactions and land acquisition area are the same scope, December calculate the average purchase price of land.

 

2. Statistics Coverage

 

All real estate development and corporate business units.

 

3. Survey Methods

 

A comprehensive survey was conducted monthly (no report in January).

 

4. Brief Description on National Real Estate Climate Index

 

The national real estate climate index follows the theory of economic cycle fluctuation, based on the business cycle theory and business cycle analysis, using time series, multivariate statistics, econometric analysis, taking real estate development and investment as the benchmarks, selecting related indicators such as real estate investment, capital, area, sales, excluding the impact of seasonal factors, including random factors, compiled by adopting the growth rate cycles method. The historical data will be revised monthly according to the newly added data. National real estate index selected year 2012 as the base year, and its growth rate was set at 100. Typically, the most appropriate level of national real estate climate index is 100, the moderate level is between 95 and 105, the lower level is below 95, and the higher level is above 105.

 

5. Division on Eastern, Central, Western and Northeastern Regions

 

Eastern region includes Beijing, Tianjin, Hebei, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Guangdong, and Hainan. Central region includes Shanxi, Anhui, Jiangxi, Henan, Hubei, and Hunan. Western region includes Inner Mongolia, Guangxi, Chongqing, Sichuan, Guizhou, Yunnan, Tibet, Shaanxi, Gansu, Qinghai, Ningxia, and Xinjiang. Northeastern region includes Liaoning, Jilin, and Heilongjiang.

 

6. The average growth rate of two years refers to the growth rate calculated by geometric average method based on the corresponding number of the same period in 2019.

 

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