National Real Estate Development and Sales in the First Seven Months of 2017
1. The completion of real estate investment
The total investment in real estate development in the first seven months of 2017 was 5,976.1 billion yuan, a nominal increase of 7.9 percent year-on-year, the growth rate went down by 0.6 percentage points over the first six months of 2017. Of which, the investment in residential buildings was 4,068.3 billion yuan, up by 10.0 percent, 0.2 percentage points higher, accounted for 68.1 percent of real estate development investment.
In the first seven months, the real estate investment in eastern region stood at 3,206.9 billion yuan, up by 8.5 percent year-on-year, and the growth rate was down by 0.1 percentage point over the first six months in 2017; the central region stood at 1, 261.2 billion yuan, went up by 13.8 percent, and the growth rate was down by 2.2 percentage points; western region stood at 1, 290.1 billion yuan, up by 5.1 percent, down by 1.7 percentage points; northeastern region reached 217.9 billion yuan, decreased 11.3 percent, the pace of drop rate narrowed 2.7 percentage points.
In the first seven months, the floor space under construction by the real estate development enterprises accounted for 7,073.13 million square meters, a year-on-year increase of 3.2 percent, a decrease of 0.2 percentage points over the first six months in 2017. Of which, the floor space of residential building construction area was 4,831.45 million square meters, up by 2.8 percent. The floor space started this year was 1,003.71 millions square meters, up by 8.0 percent, and the growth rate was down by 2.6 percentage points. The floor space of residential buildings started in the year amounted to 717.46 million square meters, up by 11.9 percent. The floor space of buildings completed stood at 470.21 million square meters, went up by 2.4 percent, and went down by 2.6 percentage points. Of which, the floor space completed of residential buildings stood at 335.43 million square meters, went down by 0.7 percent.
In the first seven months, the land area purchased by the real estate development enterprises totaled 124.10 million square meters, was up by 11.1 percent year-on-year, and the growth rate was up by 2.3 percentage points over the first six months in 2017. The total transaction of land reached 542.8 billion yuan, increased 41.0 percent, and the pace of increase went up 2.5 percentage points.
2. Sales of Commercial Buildings
In the first seven months, the floor space of commercial buildings sold stood at 863.51 million square meters, a year-on-year increase of 14.0 percent, and was down by 2.1 percentage points over the first six months in 2017. Of the total, the floor space of residential buildings increased 11.5 percent, office building increased 33.7 percent, and buildings for business use increased 29.4 percent. The sales of commercial buildings amounted to 6,846.1 billion yuan, an increase of 18.9 percent, the rate of growth went down by 2.6 percentage points. Specifically, the sales of residential buildings went up by 15.9 percent, office buildings was up by 27.4 percent, buildings for commercial business increased 38.7 percent.
In the first seven months, the sale of floor space of commercial buildings in eastern region amounted to 383.24 million square meters, the growth rate increased 9.3 percent year-on-year, the growth pace was down by 2.4 percentage points over the first six months in 2017. The amount of sales stood at 3,989.1 billion yuan, went up by 11.7 percent, the rate of growth narrowed 2.7 percentage points. The sale of floor space of commercial buildings in central region amounted to 222.96 million square meters, increased 18.0 percent, and the pace of increase went down by 1.9 percentage points. The amount of sales stood at 1,331.8 billion yuan, increased 28.0 percent, and the pace of increase narrowed by 3.4 percentage points. The sale of floor space of commercial buildings in western region amounted to 216.68 million square meters, increased 20.0 percent year-on-year down by 1.2 percentage points over the first six months in 2017.The amount of sales stood at 1,266.8 billion yuan, went up by 36.5 percent, the growth rate went down by 1.2 percentage points. The sale of floor space of commercial buildings in northeastern region amounted to 40.63 million square meters, rose by 9.0 percent, the growth rate was down by 4.3 percentage points. The amount of sales stood at 258.4 billion yuan, went up by 19.1 percent, the growth rate went down by 2.6 percentage points.
At the end of July, the floor space of commercial housing for sale reached 634.96 million square meters, decreased 10.81 million square meters compared with that at the end of June in 2017. Of which, the residential buildings for sale decreased 9.88 million square meters, office buildings increased 0.01 million square meters, buildings for business use went down by 0.64 million square meters.
3. Sources of Funds for Real Estate Development Enterprises
In the first seven months, the sources of funds for real estate development enterprises reached 876.64 billion yuan, up by 9.7 percent year-on-year, narrowed 1.5 percentage points over the first six months in 2017. Specifically, the domestic loans stood at 1,509.4 billion yuan, increased 19.8 percent, foreign investment stood at 11.2 billion yuan, an increase of 20.6 percent, self-raising funds stood at 2,734.0 billion yuan, down by 1.9 percent, and other sources stood at 4,511.8 billion yuan, up by 14.8 percent. Among the other sources of funds, deposits and advance payments totaled 2,693.7 billion yuan, increased 20.7 percent, personal mortgage loans totaled 1,385.2 billion yuan, up by 4.1 percent.
4. National Real Estate Climate Index
In July, the national real estate climate index (the value released from this year was after revised by the based period) was 101.42, increased 0.04 points month-on-month.
| Investment in Real Estate Development for January-July
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| Indicators | Absolute Value | Growth Rate Year-on-Year (%) |
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| Investment in Real Estate (100 million yuan) | 59761 | 7.9 |
| Of which: Residential Buildings | 40683 | 10.0 |
| Office Buildings | 3708 | 4.7 |
| Buildings for Commercial Business | 8834 | 3.0 |
| Floor Space under Construction (10,000 sq.m) | 707313 | 3.2 |
| Of which: Residential Buildings | 483145 | 2.8 |
| Office Buildings | 33325 | 3.3 |
| Buildings for Commercial Business | 97647 | 2.7 |
| Floor Space of Houses Newly Started (10,000 sq.m) | 100371 | 8.0 |
| Of which: Residential Buildings | 71746 | 11.9 |
| Office Buildings | 3476 | -8.9 |
| Buildings for Commercial Business | 11945 | -5.0 |
| Floor Space of Buildings Completed (10,000 sq.m) | 47021 | 2.4 |
| Of which: Residential Buildings | 33543 | -0.7 |
| Office Buildings | 1858 | 43.2 |
| Buildings for Commercial Business | 5916 | 7.2 |
| Land Acquisition Area (10,000 sq.m) | 12410 | 11.1 |
| Value of Land Transactions (100 million yuan) | 5428 | 41.0 |
| Floor Space of Commercial Buildings Sold (10,000 sq.m) | 86351 | 14.0 |
| Of which: Residential Buildings | 74876 | 11.5 |
| Office Buildings | 2399 | 33.7 |
| Buildings for Business Use | 5967 | 29.4 |
| Sales of Commercial Buildings (100 million yuan) | 68461 | 18.9 |
| Of which: Residential Buildings | 57087 | 15.9 |
| Office Buildings | 3340 | 27.4 |
| Buildings for Commercial Business | 6355 | 38.7 |
| Floor Space of Commercial Housing for Sale (10,000 sq.m) | 63496 | -11.0 |
| Of which: Residential Buildings | 34181 | -20.8 |
| Office Buildings | 3647 | 7.8 |
| Buildings for Commercial Business | 15729 | 1.7 |
| Sources of Funds for Real Estate Development Enterprises (100 million yuan) | 87664 | 9.7 |
| Of which: Domestic Loans | 15094 | 19.8 |
| Foreign Investment | 112 | 20.6 |
| Self-raising Funds | 27340 | -1.9 |
| Other Sources of Funds | 45118 | 14.8 |
| Deposits and Advance Payments | 26937 | 20.7 |
| Personal Mortgage | 13852 | 4.1 |
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| Real Estate Investment in Eastern, Central and Western Regions for January-July
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| Regions | Investment (100 million yuan) |
| Growth Rate Y/Y (%) |
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| Residential Buildings | Residential Buildings | |||
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| National Total | 59761 | 40683 | 7.9 | 10.0 |
| Eastern | 32069 | 21934 | 8.5 | 11.1 |
| Central | 12612 | 8860 | 13.8 | 14.5 |
| Western | 12901 | 8320 | 5.1 | 7.3 |
| Northeastern | 2179 | 1569 | -11.3 | -10.3 |
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| Sales of Commercial Buildings in Eastern, Central and Western Regions for January-July
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| Regions | Floor Space of Commercial Buildings Sold | Sales of Commercial Buildings | ||
| Absolute Value (10,000 Sq.m) | Growth Rate Y/Y (%) | Absolute Value (100 million yuan) | Growth Rate Y/Y (%) | |
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| National Total | 86351 | 14.0 | 68461 | 18.9 |
| Eastern | 38324 | 9.3 | 39891 | 11.7 |
| Central | 22296 | 18.0 | 13318 | 28.0 |
| Western | 21668 | 20.0 | 12668 | 36.5 |
| Northeastern | 4063 | 9.0 | 2584 | 19.1 |
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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-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 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
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.