National Real Estate Development and Sales in the First Eight Months of 2021

1. The completion of real estate investment

From January to August, the national investment in real estate development was 9,806 billion yuan, a year-on-year increase of 10.9 percent; it was 15.9 percent higher than that from January to August 2019, with an average growth of 7.7 percent in the two years. Among them, the residential investment was 7,397.1 billion yuan, an increase of 13.0 percent.

From January to August, the investment in real estate development in the eastern region was 5,187.1 billion yuan, a year-on-year increase of 9.6 percent; the central region invested 2,061.4 billion yuan, an increase of 17.1 percent; the investment in the western region was 2,183.7 billion yuan, an increase of 9.4 percent; the investment in northeast China was 373.8 billion yuan, an increase of 5.2 percent.

From January to August, the housing construction area of real estate development enterprises was 9,099.92 million square meters, an increase of 8.4 percent year-on-year. Among them, the residential construction area was 6,443.36 million square meters, an increase of 8.8 percent. The new construction area of houses was 1,355.02 million square meters, down 3.2 percent. Among them, the newly started residential area was 1,007.65 million square meters, down 1.7 percent. The completed housing area was 467.39 million square meters, an increase of 26.0 percent. Among them, the completed residential area was 337.71 million square meters, an increase of 27.4 percent.

From January to August, the land acquisition area of real estate development enterprises was 107.33 million square meters, a year-on-year decrease of 10.2 percent; the land transaction price was 664.7 billion yuan, down 6.2 percent.

2. Sales of Commercial Buildings

From January to August, the sales area of commercial housing was 1,141.93 million square meters, a year-on-year increase of 15.9 percent; it was 12.1 percent higher than that from January to August 2019, with an average growth of 5.9 percent in the two years. Among them, the sales area of residential buildings increased by 16.5 percent, the sales area of office buildings increased by 3.7 percent, and the sales area of commercial business houses increased by 2.1 percent. The sales volume of commercial housing was 11,904.7 billion yuan, an increase of 22.8 percent; it was 24.8 percent higher than that from January to August 2019, with an average growth of 11.7 percent in the two years. Among them, residential sales increased by 24.5 percent, office building sales increased by 3.5 percent, and commercial business housing sales increased by 3.3 percent.

From January to August, the sales area of commercial houses in the eastern region was 479.5 million square meters, a year-on-year increase of 18.1 percent; sales reached 6,905.2 billion yuan, an increase of 27.7 percent. The sales area of commercial housing in the central region was 316.98 million square meters, an increase of 20.4 percent; sales reached 2,385.7 billion yuan, an increase of 25.1 percent. The sales area of commercial housing in the western region was 304.58 million square meters, an increase of 10.7 percent; sales reached 2,276.3 billion yuan, an increase of 11.5 percent. The sales area of commercial housing in northeast China was 40.88 million square meters, an increase of 1.8 percent; the sales volume was 337.5 billion yuan, down 0.2 percent.

At the end of August, the area of commercial housing for sale was 505.8 million square meters, 2.84 million square meters less than that at the end of July. Among them, the area for sale of residential buildings decreased by 2.57 million square meters, the area for sale of office buildings decreased by 130,000 square meters, and the area for sale of commercial business houses increased by 100,000 square meters.

3. Sources of Funds for Real Estate Development Enterprises

From January to August, real estate development enterprises paid in 13,436.4 billion yuan, a year-on-year increase of 14.8 percent; it was 18.1 percent higher than that from January to August 2019, with an average growth of 8.7 percent in the two years. Among them, domestic loans amounted to 1,691.8 billion yuan, down 6.1 percent; the utilized foreign capital was 5.3 billion yuan, down 47.5 percent; self-raised funds amounted to 4,077.3 billion yuan, an increase of 9.3 percent; deposits and advance receipts were 5,099.7 billion yuan, an increase of 31.3 percent; personal mortgage loans amounted to 2,149 billion yuan, an increase of 13.4 percent.

4. National Real Estate Climate Index

In August, the real estate development climate index (referred to as "national housing climate index") was 100. 85.

Investment in Real Estate Development for January-August

Real Estate Investment in Eastern, Central and Western Regions for January-August

Sales of Commercial Buildings in Eastern, Central and Western Regions for January-August

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.

Saleable area of commercial housing: refers to the construction area of commercial housing that has been completed for sale or rental at the end of the reporting period, including the building area completed in previous years and completed in the current period, but does not include the completed demolition and reconstruction, unified construction, public supporting buildings, self-use and revolving houses of real estate companies that cannot be sold or leased area of rental housing.

 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 hand 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 finalized 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

A comprehensive survey was conducted monthly (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.

6. The average growth rate of two years refers to the growth rate calculated by geometric average method based on the corresponding number of the same period in 2019.