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

1. The completion of real estate investment

The total investment in real estate development in the first seven months of 2018 was 6,588.6 billion yuan, an increase of 10.2 percent year-on-year, the growth rate increased 0.5 percentage points over the first six months of 2018. Of which, the investment in residential buildings was 4,644.3 billion yuan, up by 14.2 percent, the growth rate increased 0.6 percentage points percent, accounted for 70.5 percent of real estate development investment.

In the first seven months, the real estate investment in eastern region stood at 3,575.5 billion yuan, up by 11.5 percent year-on-year, the growth rate increased 0.7 percentage points over the first six months of 2018; the central region stood at 1,392.0 billion yuan, went up by 10.4 percent, and the growth rate decreased 1.0 percentage point; western region stood at 1,364.7 billion yuan, up by 5.8 percent, up by 1.6 percentage points; northeastern region reached 256.4 billion yuan, increased 17.7 percent, the growth rate is the same as that in the first six months.

In the first seven months, the floor space under construction by the real estate development enterprises accounted for 7,285.93 million square meters, a year-on-year increase of 3.0 percent, increased 0.5 percentage points over the first six months in 2018. Of which, the floor space of residential building construction area was 5,020.37 million square meters, up by 3.9 percent. The floor space started this year was 1,147.81 millions square meters, up by 14.4 percent, and the growth rate was up by 2.6 percentage points. The floor space of residential buildings started in the year amounted to 846.85 million square meters, up by 18.0 percent. The floor space of buildings completed stood at 420.67 million square meters, went down by 10.5 percent, and the pace of decline narrowed 0.1 percentage point. Of which, the floor space completed of residential buildings stood at 294.63 million square meters, went down by 12.2 percent.

In the first seven months, the land area purchased by the real estate development enterprises totaled 138.18 million square meters, was up by 11.3 percent year-on-year, and the growth rate was up by 4.1 percent over the first six months in 2018. The total transaction of land reached 661.9 billion yuan, increased 21.9 percent, and the pace of growth rate went up by 1.6 percentage points.

2. Sales of Commercial Buildings

In the first seven months, the floor space of commercial buildings sold stood at 899.90 million square meters, a year-on-year increase of 4.2 percent, and was up by 0.9 percentage points over the first six months in 2018. Of the total, the floor space of residential buildings increased 4.2 percent, office building decreased 5.8 percent, and buildings for business use increased 2.3 percent. The sales of commercial buildings amounted to 7,830.0 billion yuan, an increase of 14.4 percent, the rate of growth went up by 1.2 percentage points. Specifically, the sales of residential buildings went up by 16.2 percent, office buildings was down by 2.1 percent, buildings for commercial business increased 5.5 percent.

In the first seven months, the sale of floor space of commercial buildings in eastern region amounted to 368.59 million square meters, decreased 3.8 percent year-on-year, the pace of decline narrowed 1.6 percentage points over the first six months in 2018. The amount of sales stood at 4,221.7 billion yuan, up by 5.8 percent, and the growth rate was up by 1.9 percentage points over the first six months in 2018. The sale of floor space of commercial buildings in central region amounted to 251.31 million square meters, increased 12.7 percent, and the growth rate went down by 0.1 percentage point. The amount of sales stood at 1,684.4 billion yuan, increased 26.5 percent, the rate of growth went down by 0.5 percentage points. The sale of floor space of commercial buildings in western region amounted to 239.38 million square meters, increased 10.5 percent, up by 0.5 percentage points; The amount of sales stood at 1,624.7 billion yuan, went up by 28.3 percent, the growth rate went up by 0.1 percentage point. The sale of floor space of commercial buildings in northeastern region amounted to 40.62 million square meters, flat year-on-year, of the first six months that was downed by 1.1 percent. The amount of sales stood at 299.2 billion yuan, went up by 15.8 percent, the growth rate went up by 1.7 percentage points.

At the end of July, the floor space of commercial housing for sale reached 544.28 million square meters, decreased 6.56 million square meters compared with that at the end of June in 2018. Of which, the residential buildings for sale decreased 5.44 million square meters, office buildings decreased 0.40 million square meters, buildings for business use went down by 0.48 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 9,330.8 billion yuan, up by 6.4 percent year-on-year, increased 1.8 percentage points over the first six months in 2018. Specifically, the domestic loans stood at 1,404.5 billion yuan, decreased 6.9 percent, foreign investment stood at 3.3 billion yuan, a decrease of 70.1 percent, self-raising funds stood at 3,018.7 billion yuan, up by 10.4 percent, deposits and advance payments totaled 3,101.3 billion yuan, increased 15.1 percent, personal mortgage loans totaled 1,365.5 billion yuan, down by 1.4 percent.

4. National Real Estate Climate Index

In July, the national real estate climate index was 101.88, up by 0.20 month-on-month.

Investment in Real Estate Development for January-July

Real Estate Investment in Eastern,

Central and Western Region for January- July

Sales of Commercial Buildings in Eastern,

Central and Western Region for January- July

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 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 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.