Investment in Real Estate Development for Jan-May 2024

2024-06-18 10:00 Print| Large| Medium| Small

1. The Completion of Investment in Real Estate Development

From January to May, the investment in real estate development was 4,063.2 billion yuan, a year-on-year decrease of 10.1 percent (calculated on comparable basis, see Annotation 6 for details), of which the investment in residential buildings was 3,082.4 billion yuan, down by 10.6 percent.

From January to May, the floor space of the real estate development enterprises under construction was 6,888.96 million square meters, down by 11.6 percent year on year, of which the floor space of residential buildings under construction was 4,815.57 million square meters, down by 12.2 percent. The floor space of buildings newly started was 300.90 million square meters, down by 24.2 percent, of which the floor space of residential buildings newly started was 217.60 million square meters, down by 25.0 percent. The floor space of buildings completed was 222.45 million square meters, down by 20.1 percent, of which the floor space of residential buildings completed was 161.99 million square meters, down by 19.8 percent.

2. Sales of Newly Built Commercial Buildings

From January to May, the floor space of newly built commercial buildings sold was 366.42 million square meters, down by 20.3 percent, of which the floor space of residential buildings sold decreased by 23.6 percent. The sales of newly built commercial buildings were 3,566.5 billion yuan, down by 27.9 percent, of which the sales of residential buildings decreased by 30.5 percent.

At the end of May, the floor space of commercial buildings for sale was 742.56 million square meters, up by 15.8 percent year on year, of which the floor space of residential buildings for sale increased by 24.6 percent.

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

From January to May, the funds for investment this year for real estate development enterprises were 4,257.1 billion yuan, down by 24.3 percent year on year. Among them, domestic loans were 681.0 billion yuan, down by 6.2 percent; the foreign investment was 1.1 billion yuan, down by 20.3 percent; self-raised funds were 1,481.6 billion yuan, down by 9.8 percent; deposits and advance receipts were 1,258.4 billion yuan, down by 36.7 percent; individual mortgage loans were 619.1 billion yuan, down by 40.2 percent.

4. National Real Estate Climate Index

In May, the national real estate climate index was 92.01.

Real Estate Development and Sales for Jan-May 2024

Indicators	Absolute Value	Growth Rate Y/Y (%)
Investment in real estate development (100 million yuan)	40632	-10.1
Of which: Residential buildings	30824	-10.6
Office buildings	1693	-5.1
Buildings for commercial business	2800	-12.2
Floor space of buildings under construction (10,000 sq.m)	688896	-11.6
Of which: Residential buildings	481557	-12.2
Office buildings	28470	-9.1
Buildings for commercial business	60142	-12.0
Floor space of buildings newly started (10,000 sq.m)	30090	-24.2
Of which: Residential buildings	21760	-25.0
Office buildings	822	-24.9
Buildings for commercial business	1919	-27.0
Floor space of buildings completed (10,000 sq.m)	22245	-20.1
Of which: Residential buildings	16199	-19.8
Office buildings	598	-32.2
Buildings for commercial business	1653	-20.5
Floor space of newly built commercial buildings sold (10,000 sq.m)	36642	-20.3
Of which: Residential buildings	30744	-23.6
Office buildings	879	-2.5
Buildings for commercial business	2192	1.8
Sales of newly built commercial buildings (100 million yuan)	35665	-27.9
Of which: Residential buildings	31163	-30.5
Office buildings	1160	-4.8
Buildings for commercial business	2220	-2.2
Floor space of commercial buildings for sale (10,000 sq.m)	74256	15.8
Of which: Residential buildings	38712	24.6
Office buildings	5214	9.3
Buildings for commercial business	14308	2.0
Funds for investment this year for real estate development enterprises (100 million yuan)	42571	-24.3
Of which: Domestic loans	6810	-6.2
Foreign investment	11	-20.3
Self-raised funds	14816	-9.8
Deposits and advance receipts	12584	-36.7
Individual mortgage loans	6191	-40.2

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

Regions	Investment		Growth Rate Y/Y
(100 million yuan)	Residential Buildings	(%)	Residential Buildings
National Total	40632	30824	-10.1	-10.6
Eastern	24894	18384	-8.8	-9.3
Central	8052	6559	-10.6	-10.8
Western	6895	5253	-12.6	-13.6
Northeastern	791	629	-19.2	-19.0

Sales of Commercial Buildings in Eastern, Central, Western and Northeastern Regions for Jan-May 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	36642	-20.3	35665	-27.9
Eastern	16603	-18.9	21481	-29.2
Central	9175	-22.8	6427	-28.3
Western	9560	-20.8	6838	-24.5
Northeastern	1304	-13.9	919	-19.2

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 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 is subject to the start of housing officially beginning ground-breaking gouge (ground treatment or permanent piles). 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.