National Real Estate Development and Sales in the First Two Months of 2018

1. The completion of real estate investment

The total investment in real estate development in the first two months of 2018 was 1,083.1 billion yuan, a nominal increase of 9.9 percent year-on-year, the growth rate increased 2.9 percentage points over the whole year of 2017. Of which, the investment in residential buildings was 737.9 billion yuan, up by 12.3 percent, 2.9 percentage points higher, accounted for 68.1 percent of real estate development investment.

In the first two months, the real estate investment in eastern region stood at 649.7 billion yuan, up by 11.6 percent year-on-year, and the growth rate was up by 4.4 percentage points over the whole year of 2017; the central region stood at 214.7 billion yuan, went up by 13.4 percent, and the growth rate increased 1.8 percentage points ; western region stood at 205.5 billion yuan, up by 3.7 percent, up by 0.2 percentage points; northeastern region reached 13.2 billion yuan, decreased 15.3 percent, that of the last whole year was up by 1.0 percent.

In the first two months, the floor space under construction by the real estate development enterprises accounted for 6,320.02 million square meters, a year-on-year increase of 1.5 percent, a decrease of 1.5 percentage points over the last whole year. Of which, the floor space of residential building construction area was 4,306.69 million square meters, up by 1.8 percent. The floor space started this year was 177.46 million square meters, up by 2.9 percent, and the growth rate was down by 4.1 percentage points. The floor space of residential buildings started in the year amounted to 130.32 million square meters, up by 5.0 percent. The floor space of buildings completed stood at 141.84 million square meters, went down by 12.1 percent, and the pace of decrease rate went up by 7.7 percentage points. Of which, the floor space completed of residential buildings stood at 96.82 million square meters, down by 17.1 percent.

In the first two months, the land area purchased by the real estate development enterprises totaled 23.45 million square meters, was down by 1.2 percent year-on-year, that of the last whole year was 15.8 percent. The total transaction of land reached 79.4 billion yuan, remained the same level year-on-year, that of the last whole year was an increase of 49.4 percent.

2. Sales of Commercial Buildings

In the first two months, the floor space of commercial buildings sold stood at 146.33 million square meters, a year-on-year increase of 4.1 percent, and was down by 3.6 percentage points over the whole year of 2017. Of the total, the floor space of residential buildings increased 2.3 percent, office building increased 12.0 percent, and buildings for business use increased 14.6 percent. The sales of commercial buildings amounted to 1,245.4 billion yuan, an increase of 15.3 percent, the rate of growth went up by 1.6 percentage points. Specifically, the sales of residential buildings went up by 15.7 percent, office buildings was up by 11.1 percent, buildings for commercial business increased 11.4 percent.

In the first two months, the sale of floor space of commercial buildings in eastern region amounted to 60.22 million square meters, the growth rate decreased 5.5 percent year-on-year, that of the last whole year was an increased 2.9 percent. The amount of sales stood at 692.8 billion yuan, went up by 6.7 percent, the rate of growth expanded 0.5 percentage points. The sale of floor space of commercial buildings in central region amounted to 39.23 million square meters, increased 10.7 percent, and the pace of increase went down by 2.1 percentage points. The amount of sales stood at 249.4 billion yuan, increased 25.1 percent, and the pace of increase expanded by 1 percentage point. The sale of floor space of commercial buildings in western region amounted to 42.72 million square meters, increased 13.0 percent year-on-year, up by 2.3 percentage points. The amount of sales stood at 271.7 billion yuan, went up by 30.2 percent, the growth rate went up by 4.3 percentage points. The sale of floor space of commercial buildings in northeastern region amounted to 4.16 million square meters, rose by 15.2 percent, the growth rate went up 8.2 percentage points. The amount of sales stood at 31.4 billion yuan, went up by 35.2 percent, the growth rate went up by 13.4 percentage points.

At the end of February, the floor space of commercial housing for sale reached 584.68 million square meters, decreased 4.55 million square meters compared with that at the end of 2017. Of which, the residential buildings for sale decreased 0.42 million square meters, office buildings decreased 0.71 million square meters, buildings for business use went down by 3.62 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 2,398.8 billion yuan, up by 4.8 percent year-on-year, narrowed 3.4 percentage points compared with the end of 2017. Specifically, the domestic loans stood at 500.1 billion yuan, increased 0.3 percent, foreign investment stood at 1.2 billion yuan, an decrease of 74.8 percent, self-raising funds stood at 739.0 billion yuan, up by 7.2 percent, deposits and advance payments totaled 697.6 billion yuan, increased 14.2 percent, personal mortgage loans totaled 324.7 billion yuan, down by 4.3 percent.

4. National Real Estate Climate Index

In February, the national real estate climate index (the value released from this year was after revised by the based period) was 101.66, down by 0.07 compared with December 2017.

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.