National Real Estate Development and Sales in the First Five Months of 2019
1. The completion of real estate investment
The total investment in real estate development in the first five months of 2019 was 4,607.5 billion yuan, an increase of 11.2 percent year-on-year, the growth rate decreased 0.7 percentage point over the first four months of 2019. Of which, the investment in residential buildings was 3,378 billion yuan, up by 16.3 percent, and the growth rate decreased 0.5 percentage point. Accounted for 73.3 percent of real estate development investment.
In the first five months, the real estate investment in eastern region stood at 2,522.7 billion yuan, up by 9.7 percent year-on-year, and the growth rate was down by 1.1 percentage points over the first four months in 2019; the central region stood at 971.4 billion yuan, went up by 9.2 percent, and the growth rate increased 0.5 percentage point ; western region stood at 963.7 billion yuan, up by 18.5 percent, and the growth rate increased 0.1 percentage point; northeastern region reached 149.6 billion yuan, increased 7.1 percent, and the growth rate decreased 3.5 percentage points.
In the first five months, the floor space under construction by the real estate development enterprises accounted for 7,452.86 million square meters, a year-on-year increase of 8.8 percent, and the growth rate unchanged over the first four months. Of which, the floor space of residential building construction area was 5,186.17 million square meters, up by 10.4 percent. The floor space started this year was 797.84 millions square meters, up by 10.5 percent, and the growth rate was down by 2.6 percentage points. Of the total, the floor space of residential buildings started in the year amounted to 591.25 million square meters, up by 11.4 percent. The floor space of buildings completed stood at 267.07 million square meters, went down by 12.4 percent, and the pace of decline rate expanded 2.1 percentage points. Of which, the floor space completed of residential buildings stood at 188.35 million square meters, went down by 10.9 percent.
In the first five months, the land area purchased by the real estate development enterprises totaled 51.70 million square meters, was down by 33.2 percent year-on-year, and the pace of decline narrowed 0.6 percentage point over the first four months. The total transaction of land reached 226.9 billion yuan, decreased 35.6 percent, while the pace of decline expanded 2.1 percentage points.
2. Sales of Commercial Buildings
In the first five months, the floor space of commercial buildings sold stood at 555.18 million square meters, a year-on-year decrease of 1.6 percent, while the pace of decline expanded 1.3 percentage points over the first four months. Of the total, the floor space of residential buildings decreased 0.7 percent, office building decreased 12.2 percent, and buildings for business use decreased 12.9 percent. The sales of commercial buildings amounted to 5,177.3 billion yuan, an increase of 6.1 percent, while the growth rate went down by 2.0 percentage points. Specifically, the sales of residential buildings went up by 8.9 percent, office buildings was down by 12.3 percent, buildings for commercial business decreased 9.7 percent.
In the first five months, the sale of floor space of commercial buildings in eastern region amounted to 220.95 million square meters, decreased 5.5 percent year-on-year, the pace of decline expanded 1.2 percentage points over the first four months. The amount of sales stood at 2,778.8 billion yuan, went up by 4.6 percent, and the growth rate went down by 1.4 percentage points. The sale of floor space of commercial buildings in central region amounted to 154.12 million square meters, increased 0.1 percent, and the growth rate went down by 2.3 percentage points; The amount of sales stood at 1,087.2 billion yuan, increased 6.2 percent, and the growth rate went down by 4.2 percentage points. The sale of floor space of commercial buildings in western region amounted to 1,578.8 million square meters, increased 3.8 percent, and the growth rate unchanged from that in the first four months; the amount of sales stood at 1,131.7 billion yuan, went up by 10.8 percent, the growth rate went down by 1.0 percentage point. The sale of floor space of commercial buildings in northeastern region amounted to 22.22 million square meters, down by 8.1 percent, and the pace of decline expanded 3.9 percentage points. The amount of sales stood at 179.5 billion yuan, went up by 2.3 percent, while the growth rate went down by 1.0 percentage point.
At the end of May, the floor space of commercial housing for sale reached 509.28 million square meters, decreased 4.53 million square meters compared with that at the end of April. Of which, the residential buildings for sale decreased 4.13 million square meters, office buildings decreased 0.22 million square meters, buildings for business use went up by 0.28 million square meters.
3. Sources of Funds for Real Estate Development Enterprises
In the first five months, the sources of funds for real estate development enterprises reached 6,668.9 billion yuan, up by 7.6 percent year-on-year, and the growth rate decreased 1.3 percentage points over the first four months. Specifically, the domestic loans stood at 1,076.2 billion yuan, increased 5.5 percent, foreign investment stood at 3.0 billion yuan, an increase of 38.8 percent, self-raising funds stood at 2,027.6 billion yuan, up by 4.1 percent, deposits and advance payments totaled 2,239.5 billion yuan, increased 11.3 percent, personal mortgage loans totaled 1,025.1 billion yuan, up by 10.8 percent.
4. National Real Estate Climate Index
In May, the national real estate climate index (the value released from this year was after revised by the based period) was 100.85, down by 0.07 month-on-month.
Investment in Real Estate Development for January-May
| Indicators | Absolute Value | Growth Rate Year-on-Year (%) |
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| Investment in Real Estate (100 million yuan) | 46075 | 11.2 |
| Of which: Residential Buildings | 33780 | 16.3 |
| Office Buildings | 2106 | -3.6 |
| Buildings for Commercial Business | 4650 | -9.7 |
| Floor Space under Construction (10,000 sq.m) | 745286 | 8.8 |
| Of which: Residential Buildings | 518617 | 10.4 |
| Office Buildings | 32623 | 2.6 |
| Buildings for Commercial Business | 88579 | -1.7 |
| Floor Space of Houses Newly Started (10,000 sq.m) | 79784 | 10.5 |
| Of which: Residential Buildings | 59125 | 11.4 |
| Office Buildings | 2451 | 17.5 |
| Buildings for Commercial Business | 6667 | -4.7 |
| Floor Space of Buildings Completed (10,000 sq.m) | 26707 | -12.4 |
| Of which: Residential Buildings | 18835 | -10.9 |
| Office Buildings | 952 | -27.5 |
| Buildings for Commercial Business | 3330 | -15.8 |
| Land Acquisition Area (10,000 sq.m) | 5170 | -33.2 |
| Value of Land Transactions (100 million yuan) | 2269 | -35.6 |
| Floor Space of Commercial Buildings Sold (10,000 sq.m) | 55518 | -1.6 |
| Of which: Residential Buildings | 48708 | -0.7 |
| Office Buildings | 1251 | -12.2 |
| Buildings for Business Use | 3293 | -12.9 |
| Sales of Commercial Buildings (100 million yuan) | 51773 | 6.1 |
| Of which: Residential Buildings | 45021 | 8.9 |
| Office Buildings | 1838 | -12.3 |
| Buildings for Commercial Business | 3733 | -9.7 |
| Floor Space of Commercial Housing for Sale (10,000 sq.m) | 50928 | -9.1 |
| Of which: Residential Buildings | 23908 | -14.8 |
| Office Buildings | 3611 | -0.9 |
| Buildings for Commercial Business | 13424 | -7.5 |
| Sources of Funds for Real Estate Development Enterprises (100 million yuan) | 66689 | 7.6 |
| Of which: Domestic Loans | 10762 | 5.5 |
| Foreign Investment | 30 | 38.8 |
| Self-raising Funds | 20276 | 4.1 |
| Deposits and Advance Payments | 22395 | 11.3 |
| Personal Mortgage | 10251 | 10.8 |
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Real Estate Investment in Eastern, January- May
Central and Western Regions for
| Regions | Investment (100 million yuan) |
| Growth Rate Y/Y (%) |
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| Residential Buildings | Residential Buildings | |||
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| National Total | 46075 | 33780 | 11.2 | 16.3 |
| Eastern | 25227 | 18221 | 9.7 | 13.6 |
| Central | 9714 | 7476 | 9.2 | 14.4 |
| Western | 9637 | 6923 | 18.5 | 26.7 |
| Northeastern | 1496 | 1161 | 7.1 | 16.3 |
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Sales of Commercial Buildings in Eastern, January- May
Central and Western Regions for
| 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 (%) | |
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| National Total | 55518 | -1.6 | 51773 | 6.1 |
| Eastern | 22095 | -5.5 | 27788 | 4.6 |
| Central | 15412 | 0.1 | 10872 | 6.2 |
| Western | 15788 | 3.8 | 11317 | 10.8 |
| Northeastern | 2222 | -8.1 | 1795 | 2.3 |
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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 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.