National Real Estate Development and Sales in the First Eight Months of 2015

1. The completion of real estate investment

The total investment in real estate development in the first eight months of the first seven months was 6,106.3 billion yuan, a nominal increase of 3.5 percent year-on-year, 0.8 percentage points lower over the first seven months. Of which, the investment in residential buildings was 4,109.8 billion yuan, up by 2.3 percent, 0.7 percentage points lower, and accounted for 67.3 percent of real estate development investment.

In the first eight months, the real estate investment in eastern region stood at 3,475.4 billion yuan, up by 3.7 percent year-on-year, and the growth rate went down by 1.0 percentage point over the first seven months; the central region stood at 1,271.7 billion yuan, went up by 3.5 percent, and down by 0.4 percentage points; western region stood at 1,359.1 billion yuan, up by 3.3 percent, and a decrease of 0.5 percentage points.

In the first eight months, the floor space under construction by the real estate development enterprises accounted for 6,693.60 million square meters, up by 2.5 percent year-on-year, dropped 0.9 percentage points over the first seven months. Of which, the floor space of residential building construction area was 4,662.95 million square meters, up by 0.2 percent. The floor space started this year was 951.82 millions square meters, down by 16.8 percent, and the pace of decline remained at the same level. Specifically, the floor space of residential buildings started in the year amounted to 658.30 million square meters, down by 17.9 percent. The floor space of buildings completed stood at 424.75 million square meters, went down by 14.6 percent, and the pace of decline expanded 1.5 percentage points. Of which, the floor space completed of residential buildings stood at 314.94 million square meters, went down by 17.2 percent.

In the first eight months, the land area purchased by the real estate development enterprises totaled 141.16 million square meters, a year-on-year decrease of 32.1 percent, and the pace of decrease expanded 0.1 percentage point over the first seven months. The total transaction of land reached 429.4 billion yuan, decreased 24.6 percent, and the pace of decrease declined 1.0 percentage point.

2. Sales of Commercial Buildings

In the first eight months, the floor space of commercial buildings sold stood at 696.75 million square meters, a year-on-year increase of 7.2 percent over the first seven months, and the pace of decrease went up by 1.1 percentage points over the first seven months. Of the total, the floor space of residential buildings increased 8.0 percent, office building increased 8.5 percent, and buildings for business use increased 1.2 percent. The sales of commercial buildings amounted to 4,804.2 billion yuan, an increase of 15.3 percent, and the pace of decrease increased 1.9 percentage points over the first seven months. Specifically, the sales of residential buildings went up by 18.7 percent, office buildings up by 12.9 percent, buildings for commercial business decreased 2.5 percent.

In the first eight months, the sale of floor space of commercial buildings in eastern region amounted to 335.60 million square meters, a year-on-year increase of 10.1 percent, and the pace of decrease increased 1.5 percentage points over the first seven months. The amount of sales stood at 2,948.7 billion yuan, went upby 22.2 percent, and the pace of decrease went up by 2.6 percentage points. The sale of floor space of commercial buildings in central region amounted to 181.40 million square meters, increased 4.2 percent, and the pace of decrease up by 0.9 percentage points. The amount of sales stood at 935.3 billion yuan, increased 7.4 percent, and the pace of decrease increased 1.6 percentage points. The sale of floor space of commercial buildings in western region amounted to 179.75 million square meters, an increase of 5.2 percent, and the pace of decrease went up by 0.8 percentage points. The amount of sales stood at 920.2 billion yuan, went up by 4.3 percent, and the pace of decrease increased 0.5 percentage points.

At the end of August, the floor space of commercial housing for sale reached 663.24 million square meters, increased 0.65 million square meters compared with that at the end of the first seven months. Of which, the residential buildings for sale decreased 1.94 million square meters, office buildings decreased 0.07 million square meters, buildings for business use went up by 1.57 million square meters.

3. Sources of Funds for Real Estate Development Enterprises

In the first eight months, the sources of funds for real estate development enterprises reached 7,974.2 billion yuan, up by 0.9 percent year-on-year, and 0.4 percentage points higher over the first seven months. Specifically, the domestic loans stood at 1,395.6 billion yuan, decreased 4.8 percent, foreign investment stood at 20.4 billion yuan, declined 40.1 percent, self-raising funds stood at 3,179.7 billion yuan, down by 2.5 percent, and other sources stood at 3,378.5 billion yuan, up by 7.5 percent. Among the other sources of funds, deposits and advance payments totaled 1,977.4 billion yuan, increased 4.6 percent, personal mortgage loans totaled 1,011.8 billion yuan, up by 16.3 percent.

4. National Real Estate Climate Index

In August, the national real estate climate index was 93.46, increased 0.43 points month-on-month.

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.

Floor space of commercial housing for sale: refers to the floor space of commercial housing having not been sold or rented, among the floor space of commercial housing for sale or for rent finished at the end of report period. The floor space of housing completed in previous years and in current period is included, while the floor space of housing not for sale or for rent, such as housing removal and compensation, unified construction and agent-construction, public buildings, housing for own use of real estate companies, relocation housing, is not included. 

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 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.