Investment in Real Estate Development in 2024

2025-01-18 10:00 Print| Large| Medium| Small

1. The Completion of Investment in Real Estate Development

In 2024, the investment in real estate development was 10,028.0 billion yuan, down by 10.6 percent from the previous year (calculated on a comparable basis, see Annotation 6 for details), of which the investment in residential buildings was 7,604.0 billion yuan, down by 10.5 percent.


In 2024, the floor space of buildings under construction of the real estate development enterprises was 7,332.47 million square meters, down by 12.7 percent over the previous year, of which the floor space of residential buildings under construction was 5,133.30 million square meters, down by 13.1 percent. The floor space of buildings newly started was 738.93 million square meters, down by 23.0 percent, of which the floor space of residential buildings newly started was 536.60 million square meters, down by 23.0 percent. The floor space of buildings completed was 737.43 million square meters, down by 27.7 percent, of which the floor space of residential buildings completed was 537.41 million square meters, down by 27.4 percent.

2. Sales of Newly Built Commercial Buildings

In 2024, the floor space of commercial buildings sold was 973.85 million square meters, a year-on-year decrease of 12.9 percent, of which the floor space of residential buildings sold decreased by 14.1 percent. The sales of newly built commercial buildings were 9,675.0 billion yuan, down by 17.1 percent, of which the sales of residential buildings decreased by 17.6 percent.


At the end of 2024, the floor space of commercial buildings for sale was 753.27 million square meters, up by 10.6 percent over the previous year, of which the floor space of residential buildings for sale increased by 16.2 percent.

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

In 2023, the funds for investment of real estate development enterprises were 10,766.1 billion yuan, down by 17.0 percent from the previous year. Among them, domestic loans were 1,521.7 billion yuan, down by 6.1 percent; the foreign investment was 3.2 billion yuan, down by 26.7 percent; self-raised funds were 3,774.6 billion yuan, down by 11.6 percent; deposits and advance receipts were 3,357.1 billion yuan, down by 23.0 percent; and individual mortgage loans were 1,566.1 billion yuan, down by 27.9 percent.


4. National Real Estate Climate Index

In December 2024, the national real estate climate index was 92.78.


Real Estate Development and Sales for 2024

Indicators

Absolute Value

Growth Rate Y/Y (%)

Investment in real estate development (100 million yuan)

100280

-10.6

Of which: Residential buildings

76040

-10.5

Office buildings

4160

-9.0

Buildings for commercial business

6944

-13.9

Floor space of buildings under construction (10,000 sq.m)

733247

-12.7

Of which: Residential buildings

513330

-13.1

Office buildings

29858

-10.1

Buildings for commercial business

63195

-12.6

Floor space of buildings newly started (10,000 sq.m)

73893

-23.0

Of which: Residential buildings

53660

-23.0

Office buildings

1893

-27.7

Buildings for commercial business

4980

-23.3

Floor space of buildings completed (10,000 sq.m)

73743

-27.7

Of which: Residential buildings

53741

-27.4

Office buildings

1940

-35.2

Buildings for commercial business

4894

-31.6

Floor space of newly built commercial buildings sold (10,000 sq.m)

97385

-12.9

Of which: Residential buildings

81450

-14.1

Office buildings

2403

-11.5

Buildings for commercial business

5986

-5.9

Sales of newly built commercial buildings (100 million yuan)

96750

-17.1

Of which: Residential buildings

84864

-17.6

Office buildings

3208

-14.3

Buildings for commercial business

5728

-13.6

Floor space of commercial buildings for sale (10,000 sq.m)

75327

10.6

Of which: Residential buildings

39088

16.2

Office buildings

5313

8.6

Buildings for commercial business

14437

0.6

Funds for investment this year of real estate development enterprises (100 million yuan)

107661

-17.0

Of which: Domestic loans

15217

-6.1

Foreign investment

32

-26.7

Self-raised funds

37746

-11.6

Deposits and advance receipts

33571

-23.0

Individual mortgage loans

15661

-27.9

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

Regions

Investment

Growth Rate Y/Y

(100 million yuan)

Residential Buildings

(%)

Residential Buildings

National Total

100280

76040

-10.6

-10.5

Eastern

60243

44229

-11.0

-10.8

Central

19563

16021

-9.4

-9.5

Western

18110

13922

-8.9

-9.1

Northeastern

2365

1868

-21.8

-20.9

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

Regions

Floor Space of Newly Built Commercial Buildings Sold

Sales of Newly Built Commercial Buildings

Absolute Value

Growth Rate Y/Y

Absolute Value

Growth Rate Y/Y

(10,000 sq.m)

(%)

(100 million yuan)

(%)

National Total

97385

-12.9

96750

-17.1

Eastern

45055

-12.7

59373

-17.5

Central

24911

-12.0

17380

-16.4

Western

23834

-14.6

17485

-17.0

Northeastern

3585

-9.7

2512

-11.4

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 of 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 the floor space of buildings newly started by the real estate development enterprises during the reporting period, and it takes 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. The specific due date of construction for a building is subject to the date when excavation for the foundation (ground treatment or permanent piles) officially begins. Floor space of buildings newly started refers to the entire floor spaces of whole building and cannot be calculated separately.

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 legal entities of real estate development with operation activities.

3. Survey Methods

Collect 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. Factors causing incomparability between the data of reporting period and the data released of the same period in the previous year made it impossible to calculate the growth rates directly. The main reasons are: (1) 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 projects such as simple primary land development that didn’t belong to the real estate development were removed in the review over the ongoing real estate development projects. (2) Data that didn’t belong to the sale of commercial buildings, such as transactions canceled and buildings mortgaged, were removed in the review over sales data of commercial buildings. (3) Problematic data were spotted and revised according to relevant rules as a result of statistical law enforcement.