National Real Estate Development and Sales in the First Six Months of 2019
1. The completion of real estate investment
The total investment in real estate development in the first six months of 2019 was 6,160.9 billion yuan, an increase of 10.9 percent year-on-year, the growth rate decreased by 0.3 percentage point over the first five months of 2019. Of which, the investment in residential buildings was 4,516.7 billion yuan, up by 15.8 percent, and the growth rate decreased by 0.5 percentage point. Accounted for 73.3 percent of real estate development investment.
In the first six months, the real estate investment in eastern region stood at 3,318 billion yuan, up by 9.9 percent year-on-year, and the growth rate was up by 0.2 percentage point over the first five months in 2019; the central region stood at 1,289.4 billion yuan, went up by 8.9 percent, and the growth rate decreased by 0.3 percentage point ; western region stood at 1,323.2 billion yuan, up by 15.5 percent, and the growth rate decreased by 3.0 percentage points; northeastern region reached 230.4 billion yuan, increased by 12.7 percent, and the growth rate increased by 5.6 percentage points.
In the first six months, the land area purchased by the real estate development enterprises totaled 80.35 million square meters, was down by 27.5 percent year-on-year, and the pace of decline narrowed 5.7 percentage points over the first five months. The total transaction of land reached 381.1 billion yuan, decreased by 27.6 percent, while the pace of decline narrowed 8.0 percentage points.
2. Sales of Commercial Buildings
In the first six months, the floor space of commercial buildings sold stood at 757.86 million square meters, a year-on-year decrease of 1.8 percent, while the pace of decline expanded 0.2 percentage point over the first five months. Of the total, the floor space of residential buildings decreased by 1.0 percent, office building decreased by 10.0 percent, and buildings for business use decreased by 12.3 percent. The sales of commercial buildings amounted to 7,069.8 billion yuan, an increase of 5.6 percent, while the growth rate went down by 0.5 percentage point. Specifically, the sales of residential buildings went up by 8.4 percent, office buildings was down by 12.5 percent, buildings for commercial business decreased by 10.0 percent.
In the first six months, the sale of floor space of commercial buildings in eastern region amounted to 301.44 million square meters, decreased by 4.6 percent year-on-year, the pace of decline narrowed 0.9 percentage point over the first five months. The amount of sales stood at 3,771.6 billion yuan, went up by 4.7 percent, and the growth rate went up by 0.1 percentage point. The sale of floor space of commercial buildings in central region amounted to 214.81 million square meters, decreased by 0.5 percent, while 0.1 percent increase in the first five months; The amount of sales stood at 1,535.3 billion yuan, increased by 6.1 percent, and the growth rate went down by 0.1 percentage point. The sale of floor space of commercial buildings in western region amounted to 210.99 million square meters, increased by 2.3 percent, and the growth rate decreased by 1.5 percentage points from that in the first five months; the amount of sales stood at 1,517.8 billion yuan, went up by 8.4 percent, the growth rate went down by 2.4 percentage points. The sale of floor space of commercial buildings in northeastern region amounted to 30.63 million square meters, down by 8.3 percent, and the pace of decline expanded 0.2 percentage point. The amount of sales stood at 245.1 billion yuan, went up by 0.9 percent, while the growth rate went down by 1.4 percentage points.
At the end of June, the floor space of commercial housing for sale reached 501.62 million square meters, decreased by 7.66 million square meters compared with that at the end of May. Of which, the residential buildings for sale decreased by 6.72 million square meters, office buildings increased by 0.16 million square meters, buildings for business use went down by 0.74 million square meters.
3. Sources of Funds for Real Estate Development Enterprises
In the first six months, the sources of funds for real estate development enterprises reached 8,496.6 billion yuan, up by 7.2 percent year-on-year, and the growth rate decreased by 0.4 percentage points over the first five months. Specifically, the domestic loans stood at 1,333 billion yuan, increased by 8.4 percent, foreign investment stood at 4.3 billion yuan, an increase of 51.8 percent, self-raising funds stood at 2,673.1 billion yuan, up by 4.7 percent, deposits and advance payments totaled 2,846.5 billion yuan, increased by 9.0 percent, personal mortgage loans totaled 1,280.6 billion yuan, up by 11.1 percent.
4. National Real Estate Climate Index
In June, the national real estate climate index was 100.89, up by 0.04 month-on-month.
Investment in Real Estate Development for January-June
| Indicators | Absolute Value | Growth Rate Year-on-Year (%) |
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| Investment in Real Estate (100 million yuan) | 61609 | 10.9 |
| Of which: Residential Buildings | 45167 | 15.8 |
| Office Buildings | 2815 | -0.7 |
| Buildings for Commercial Business | 6183 | -9.8 |
| Floor Space under Construction (10,000 sq.m) | 772292 | 8.8 |
| Of which: Residential Buildings | 538284 | 10.3 |
| Office Buildings | 33585 | 3.3 |
| Buildings for Commercial Business | 90931 | -1.7 |
| Floor Space of Houses Newly Started (10,000 sq.m) | 105509 | 10.1 |
| Of which: Residential Buildings | 77998 | 10.5 |
| Office Buildings | 3265 | 19.3 |
| Buildings for Commercial Business | 8876 | -3.7 |
| Floor Space of Buildings Completed (10,000 sq.m) | 32426 | -12.7 |
| Of which: Residential Buildings | 22929 | -11.7 |
| Office Buildings | 1200 | -19.8 |
| Buildings for Commercial Business | 3927 | -17.4 |
| Land Acquisition Area (10,000 sq.m) | 8035 | -27.5 |
| Value of Land Transactions (100 million yuan) | 3811 | -27.6 |
| Floor Space of Commercial Buildings Sold (10,000 sq.m) | 75786 | -1.8 |
| Of which: Residential Buildings | 66181 | -1.0 |
| Office Buildings | 1754 | -10.0 |
| Buildings for Business Use | 4612 | -12.3 |
| Sales of Commercial Buildings (100 million yuan) | 70698 | 5.6 |
| Of which: Residential Buildings | 61345 | 8.4 |
| Office Buildings | 2483 | -12.5 |
| Buildings for Commercial Business | 5197 | -10.0 |
| Floor Space of Commercial Housing for Sale (10,000 sq.m) | 50162 | -8.9 |
| Of which: Residential Buildings | 23236 | -15.2 |
| Office Buildings | 3627 | 0.8 |
| Buildings for Commercial Business | 13349 | -7.0 |
| Sources of Funds for Real Estate Development Enterprises (100 million yuan) | 84966 | 7.2 |
| Of which: Domestic Loans | 13330 | 8.4 |
| Foreign Investment | 43 | 51.8 |
| Self-raising Funds | 26731 | 4.7 |
| Deposits and Advance Payments | 28465 | 9.0 |
| Personal Mortgage | 12806 | 11.1 |
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Real Estate Investment in Eastern, January- June
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 | 61609 | 45167 | 10.9 | 15.8 |
| Eastern | 33180 | 23990 | 9.9 | 13.1 |
| Central | 12894 | 9890 | 8.9 | 13.9 |
| Western | 13232 | 9525 | 15.5 | 24.8 |
| Northeastern | 2304 | 1761 | 12.7 | 20.2 |
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Sales of Commercial Buildings in Eastern, January- June
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 | 75786 | -1.8 | 70698 | 5.6 |
| Eastern | 30144 | -4.6 | 37716 | 4.7 |
| Central | 21481 | -0.5 | 15353 | 6.1 |
| Western | 21099 | 2.3 | 15178 | 8.4 |
| Northeastern | 3063 | -8.3 | 2451 | 0.9 |
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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.