Chinese investment in real estate development in first two months of 2014 up 19.3% year-over-year in nominal terms to 795.6B yuan, with residential building investment up 18.4% to 542.6B yuan

BEIJING , March 14, 2014 (press release) – 1. The completion of real estate investment

The total investment in real estate development in the first two months of 2014 was 795.6 billion yuan, a nominal increase of 19.3 percent year-on-year, 0.5 percentage points lower over the previous year. Of which, the investment in residential buildings was 542.6 billion yuan, up by 18.4 percent, 1.0 percentage point lower over the previous year, and accounted for 68.2 percent of real estate development investment.



In the first two months, the real estate investment in eastern region stood at 479.2 billion yuan, up by 19.1 percent year-on-year, the growth rate up by 0.8 percentage points over the previous year; the central region stood at 150.8 billion yuan, went up by 21.5 percent, and up by 0.7 percentage points; western region stood at 165.6 billion yuan, up by 17.9 percent, and a decrease of 4.7 percentage points.

In the first two months, the floor space under construction by the real estate development enterprises accounted for 5,295.93 million square meters, up by 16.3 percent year-on-year, increased 0.2 percentage points over the previous year. Of which, the floor space of residential building construction area was 3,809.52 million square meters, up by 13.5 percent. The floor space started this year was 166.93 millions square meters, down by 27.4 percent. Specifically, the floor space of residential buildings started in the year amounted to 122.79 million square meters, down by 29.6 percent. The floor space of buildings completed stood at 124.18 million square meters, went down by 8.2 percent, of which, the floor space completed of residential buildings stood at 92.66 million square meters, went down by 10.6 percent.

In the first two months, the land area purchased by the real estate development enterprises totaled 40.62 million square meters, a year-on-year increase of 6.5 percent. The total transaction of land reached 100.0 billion yuan, increased 8.9 percent.
 


2. Sales of Commercial Buildings

In the first two months, the floor space of commercial buildings sold stood at 104.66 million square meters, a year-on-year decrease of 0.1 percent. Of the total, the floor space of residential buildings decreased 1.2 percent, office building decreased 8.0 percent, and buildings for business use increased 8.4 percent. The sales of commercial buildings amounted to 709.0 billion yuan, a decrease of 3.7 percent. Specifically, the sales of residential buildings went down by 5.0 percent, office buildings down by 17.1 percent, buildings for commercial business up by 7.9 percent.


In the first two months, the sale of floor space of commercial buildings in eastern region amounted to 50.89 million square meters, a year-on-year decrease of 6.0 percent. The amount of sales stood at 435.6 billion yuan, went down by 9.6 percent. The sale of floor space of commercial buildings in central region amounted to 28.00 million square meters, increased 15.1 percent. The amount of sales stood at 140.5 billion yuan, increased 14.3 percent. The sale of floor space of commercial buildings in western region amounted to 25.77 million square meters, a decrease of 1.8 percent. The amount of sales stood at 132.9 billion yuan, went up by 1.3 percent.

At the end of February, the floor space of commercial housing for sale reached 513.97 million square meters, increased 21.02 million square meters compared with that at the end of 2013. Of which, the residential buildings for sale increased 17.70 million square meters, office buildings increased 0.64 million square meters, buildings for business use climbed 2.33 million square meters.

3. Sources of Funds for Real Estate Development Enterprises

In the first two months, the sources of funds for real estate development enterprises reached 2,126.4 billion yuan, up by 12.4 percent year-on-year. Specifically, the domestic loans stood at 491.3 billion yuan, increased 24.8 percent, foreign investment stood at 5.0 billion yuan, down by 43.2 percent, self-raising funds stood at 825.6 billion yuan, up by 12.6 percent, and other sources stood at 804.5 billion yuan, up by 6.3 percent. Among the other sources of funds, deposits and advance payments totaled 494.7 billion yuan, increased 6.3 percent, personal mortgage loans totaled 211.6 billion yuan, up by 2.9 percent.

4. National Real Estate Climate Index

In February, the national real estate climate index was 96.91, decreased 0.30 points over that in December 2013.

Investment in Real Estate Development for January-February

 

Indicators

Absolute

Value

Growth Rate

Year-on-Year

(%)

 

 

 

 Investment in Real Estate (100 million yuan)

7956

19.3

  Of which: Residential Buildings

5426

18.4

      Office Buildings

494

27.1

      Buildings for Commercial Business

1117

26.4

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

529593

16.3

  Of which: Residential Buildings

380952

13.5

      Office Buildings

20964

26.3

      Buildings for Commercial Business

66049

25.1

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

16693

-27.4

  Of which: Residential Buildings

12279

-29.6

      Office Buildings

524

-27.3

      Buildings for Commercial Business

2164

-15.2

 Land Acquisition Area (10,000 sq.m)

4062

6.5

 Value of Land Transactions (100 million yuan)

1000

8.9

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

12418

-8.2

  Of which: Residential Buildings

9266

-10.6

      Office Buildings

368

14.0

      Buildings for Commercial Business

1502

-7.9

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

10466

-0.1

  Of which: Residential Buildings

9377

-1.2

      Office Buildings

231

-8.0

      Buildings for Business Use

569

8.4

 Sales of Commercial Buildings (100 million yuan)

7090

-3.7

  Of which: Residential Buildings

5985

-5.0

      Office Buildings

297

-17.1

      Buildings for Commercial Business

647

7.9

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

51397

22.7

  Of which: Residential Buildings

34173

22.9

      Office Buildings

2018

17.9

      Buildings for Commercial Business

9578

21.1

 Sources of Funds for Real Estate Development Enterprises

 (100 million yuan)

21264

12.4

  Of which: Domestic Loans

4913

24.8

      Foreign Investment

50

-43.2

      Self-raising Funds

8256

12.6

      Other Sources of Funds

8045

6.3

      Deposits and Advance Payments

4947

6.3

      Personal Mortgage

2116

2.9

 

 

 

 

Real Estate Investment in Eastern,

Central and Western Regions for January-February

 

Regions

Investment

(100 million yuan)

 

Growth Rate Y/Y (%)

 

Residential Buildings

Residential Buildings

 

 

 

 

 

National Total

7956

5426

19.3

18.4

Eastern

4792

3213

19.1

17.4

Central

1508

1087

21.5

25.8

Western

1656

1126

17.9

14.6

 

 

 

 

 

 

Sales of Commercial Buildings in Eastern,

Central and Western Regions for January-February

 

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

10466

-0.1

7090

-3.7

Eastern

5089

-6.0

4356

-9.6

Central

2800

15.1

1405

14.3

Western

2577

-1.8

1329

1.3

 

 



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.

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-storey 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 e 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 can not 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 handed 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 finalize the 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

Collected monthly with complete enumeration (no report in January).

4. Brief description on national real estate climate index

National real estate climate index fluctuations follow by the economic cycle theory, according to the business cycle theory and business cycle analysis, based on the use of time series, multivariate statistical, econometric analysis, use the real estate development and investment as the benchmarks, selected related indicators such as real estate investment, capital, area, sales, conducted by the seasonal factors and random factors, adopting the growth rate cycle method. National real estate index selected year 2000 as the base year, its growth rate 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 and Western Regions

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

6. Calculation on Growth Rate

The growth rate of real estate investment is nominal growth rate, due to the investment in fixed assets price index was calculated on quarterly, in addition to the January-March, January-June, January-September, and January-December was calculated on computable real growth rate, the other months only calculated the nominal growth rate.

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