Investment in Real Estate Development from January to February 2024

1. The Completion of Investment in Real Estate Development

 

From January to February, the investment in real estate development was 1,184.2 billion yuan, a year-on-year decrease of 9.0 percent (calculated on comparable basis, see Annotation 6 for details), of which the investment in residential buildings was 882.3 billion yuan, down by 9.7 percent.

 

 

From January to February, the floor space of the real estate development enterprises under construction was 6,669.02 million square meters, down by 11.0 percent year on year, of which the floor space of residential buildings under construction was 4,666.36 million square meters, down by 11.4 percent. The floor space of buildings newly started was 94.29 million square meters, down by 29.7 percent, of which the floor space of residential buildings newly started was 67.96 million square meters, down by 30.6 percent. The floor space of buildings completed was 103.95 million square meters, down by 20.2 percent, of which the floor space of residential buildings completed was 76.94 million square meters, down by 20.2 percent.

 

2. Sales of Newly Built Commercial Buildings

 

From January to February, the floor space of newly built commercial buildings sold was 113.69 million square meters, a year-on-year decrease of 20.5 percent, of which the floor space of residential buildings sold decreased by 24.8 percent. The sales of newly built commercial buildings were 1,056.6 billion yuan, down by 29.3 percent, of which the sales of residential buildings decreased by 32.7 percent.

 

 

At the end of February, the floor space of commercial buildings for sale was 759.69 million square meters, up by 15.9 percent year on year, of which the floor space of the residential buildings for sale increased by 23.8 percent.

 

3. Funds for Investment This Year for Real Estate Development Enterprises

 

From January to February, the funds for investment this year for real estate development enterprises were 1,619.3 billion yuan, down by 24.1 percent. Among them, domestic loans were 314.4 billion yuan, down by 10.3 percent; the foreign investment was 500 million yuan, up by 7.4 percent; self-raised funds were 537.4 billion yuan, down by 15.2 percent; deposits and advance receipts were 463.0 billion yuan, down by 34.8 percent; individual mortgage loans were 221.4 billion yuan, down by 36.6 percent.

 

 

4. National Real Estate Climate Index

 

In February, the national real estate climate index was 92.13.

 

 

Real Estate Development and Sales for Jan-Feb 2024

 

 

Real Estate Investment in Eastern, Central, Western and Northeastern Regions for Jan-Feb 2024

 

 

Sales of Commercial Buildings in Eastern, Central, Western and Northeastern Regions for Jan-Feb 2024

 

 

Annotations:

 

1. Explanatory Notes

 

The total investment in real estate development this year refers to all investments completed during the reporting period for housing, land development projects, public welfare construction, land acquisition costs and so forth. The index is cumulatively statistical data.

 

Floor space of newly built commercial buildings sold refers to the total areas sold of newly built 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 index is cumulatively statistical data.

 

Sales of newly built commercial buildings refers to the contract lump sum of new commercial buildings for sale during the reporting period (i.e. the lump sum of sales for selling of commercial building as designated in the formal contract signed by both sides). This index is cumulative data, on the same comparable basis with the floor space of newly built commercial buildings sold.

 

Floor space of commercial buildings for sale refers to the area of commercial housing that has not been sold or leased among the completed construction areas of commercial housing available for sale or lease at the end of the reporting period, including the area of housing completed in the previous year and the current period, but excluding the floor area of buildings that cannot be sold or leased, such as those are demolished to rebuilt, unified and agent-construction, public supporting buildings, self-used by real estate enterprises and relocation houses that have been completed in the reporting period.

 

Funds for investment this year for real estate development enterprises refers to various currencies 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, deposits and advance receipts, individual mortgage loans and other funds. The index is cumulatively statistical data.

 

Floor space of buildings under construction refers to the total floor space of all buildings by the real estate development enterprises during the reporting period, 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-storey buildings refers to the total floor space of all storeys.

 

Floor space of buildings newly started refers to floor space of buildings newly started by the real estate development enterprises during the reporting period, the unit project as the accounting object, not including continued construction area of buildings which started in the previous period and entered the reporting 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 buildings 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 that has been completed in accordance with design requirements, and meets the living conditions and conditions of use, acceptance of accreditation standards or the final acceptance, and the total building areas could formally hand over to be used.

 

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 investment in real estate development 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

 

The eastern region includes Beijing, Tianjin, Hebei, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Guangdong, and Hainan; the central region includes Shanxi, Anhui, Jiangxi, Henan, Hubei, and Hunan; the western region includes Inner Mongolia, Guangxi, Chongqing, Sichuan, Guizhou, Yunnan, Xizang, Shaanxi, Gansu, Qinghai, Ningxia, and Xinjiang; the northeastern region includes Liaoning, Jilin, and Heilongjiang.

 

6. Explanation of Year-on-Year Growth Rate

 

The growth rates of indicators, including investment in real estate development and floor space of newly built commercial buildings sold, are calculated on a comparable basis. There are non-comparable factors between data during the reporting period and data from the same period of the previous year that have been announced, so it is incorrect to directly calculate the growth rate by dividing the data from two different years. The main reasons are: (1) In order to further clarify the statistical definition standards for real estate development, projects that meet the statistical standards for real estate development are included in the statistical scope, and non-real estate development projects such as the primary land development are excluded. (2) In order to strengthen the review of commercial buildings' sales data, the sales data of non-commercial buildings such as refunded buildings or mortgaged buildings have been eliminated. (3) In order to strengthen statistical law enforcement, the error data found in inspections have been revised in accordance with the relevant provisions.