Investment in China real estate development up 38.2% y-o-y

KUALA LUMPUR: Total investment in China’s real estate was up by 38.2% year-on-year (y-o-y) from January to May 2010, reaching a total of 1.39 trillion yuan (RM657 million) according to China’s National Bureau of Statistics.

Commercial residential buildings make up 69.3% (964.3 billion yuan) of the total investment, which is a 35.7% y-o-y increase. In May, the completion of investment in real estate development was 398.5 billion yuan, increasing by 64.8 billion yuan or 19.4% over the previous month.

The bureau reported that in the first five months of the 2010, floor spaces under construction of real estate development enterprises in China stood at 2.85 trillion sq m, an increase of 30.5% y-o-y.

The newly started floor space of housing stood at 615 million sq m, up by 72.4% y-o-y. The floor spaces completed reached 192 million square m, climbing up 18.1% y-o-y, of which residential buildings make up 153 million sq m, up 14.8% y-o-y.

In the same period, the land space purchased by real estate development enterprises in the whole country reached 129.43 million sq m, up by 31.1% y-o-y, while the total value of land purchased reached 293.1 billion yuan, climbing up 89.7% y-o-y.

On sales of commercial building, the bureau reported that from January to May this year, sales accounted for 302 million sq m, up 22.5% y-o-y, but dropped 10.3 percentage points over the first four months.

“Of the total, the floor spaces of residential buildings sold increased 19.9%; that of office buildings and buildings for commercials used went up 74.5% and 45.7%,” it said.

From January to May, the total sales of commercial buildings amounted to 1.58 trillion yuan, up 38.4% y-o-y, of which sales of commercial residential buildings surged 33.6%, while office buildings and buildings for commercial uses increased 11.2% and 64.4% respectively.

Meanwhile in May, the floor spaces of commercial buildings sold accounted for 67.77 million sq m, decreasing by 12.74 million square m over last month, representing a drop of 15.8%. The total sales of commercial buildings were worth 333.5 billion yuan, a decrease of 111.3 billion yuan, or 25%.

Funding sources of real estate development enterprises from January to May reached 2.73 trillion yuan, a y-o-y increase of 57.2%. Of the total, domestic loans amounted to 555 billion yuan, up by 43.6%.

The use of foreign funds reached 16.9 billion yuan, a decrease of 24.8%, while that of self-financing funds hit 954.1 billion yuan, up 54.3%. Other funds accounted for 1,202.9 billion yuan, up 69.8%.

“In view of the other funds, deposits and advantage payments totaled 669.7 billion yuan, ballooned 61.1%; and that of personal mortgage loans stood at 374.4 billion yuan, gained in 88.8%,” it said.

The National Bureau of Statistics also reported that in May, sales price indices of buildings in 70 medium-large sized cities increased 12.4% y-o-y, narrowing 0.4 percentage points over April and that the chain index was booming up by 0.2%, decreased 1.2 percentage points over April.

The sales price of newly constructed residential buildings increased 15.1% y-o-y, but fell 0.3 percentage points over April; while the chain index went up by 0.4%, narrowed 1.0 percentage points over April.

In terms of different categories, the sales price indices of economically affordable housings went up 1.4% year-on-year. Commercial residential buildings went up by 16.9% of which, the sales price indices of ordinary and luxury commercial housings went up 16.3% and 19.1% respectively.

Comparing on a month-on-month (m-o-m) basis, the sales price indices of economically affordable housings and commercial residential buildings went up 0.1% and 0.4%. Of the total, ordinary commercial buildings and luxury commercial buildings increased by 0.5% and 0.2% respectively.

It reported that the sale price indices of second-hand residential housings expanded 9.2% y-o-y, or narrowed 1.3 percentage points m-o-m; the chain index dropped 0.4%, narrowed 2.1 percentage points month-on-month.

Meanwhile, in May China’s national real estate development climate index was at 105.07, dropping 0.59 points m-o-m but climbed 9.13 points year-on-year.

On other indices, the investment index of real estate development was at 105.56, up 0.62 points m-o-m or increased 12.43 points y-o-y.

The index of capital sources stood at 116.69, down by 1.46 points m-o-m but up by 20.07 y-o-y. The index of floor spaces development was 90.15, increasing 1.70 points m-o-m but decreased 2.40 points y-o-y.

The index of vacant floor spaces of commercial buildings was 103.48, up 1.70 points m-o-m and increased 14.43 points y-on-y while the index of floor spaces of buildings under construction was 111.36, falling 0.49 points m-o-m but climbed 17.43 points y-o-y.