Steady Recovery of Chinese Real Estate Industry, 2009H1

www.shcri.com - With the implementation of Chinese policies and measures for the healthy development of the real estate market, Chinese real estate industry began to recover in 2009H1; consumption confidence is enhanced; the commercial housing turnover saw a steady rise; the decrease of the investment growth rate reduced; enterprises faced less capital pressures; the housing price maintained a stable increase.

The steady recovery of Chinese real estate market can be indicated from three aspects:

First, there was active housing trade with housing turnover in some cities rising exponentially.

In 2009H1, the sales area of Chinese new commercial housing reached 315 million square meters, growing by 33.4% YOY. The growth rate increased by 24.7% compared with that in 2009Q1.

As to different regions, the commercial housing sales area in East China restored in a full range. Growth rates in Beijing, Jiangsu, Zhejiang, Fujian and Guangdong all rose by over 50% YOY. Beijing achieved a YOY growth rate of 142.2%.

The real estate market in Central China restored steadily. Sales area in Henan, Hunan and Jiangxi all rose by 20% YOY.

The real estate market in West China also rebounded comprehensively. Sales area in Chongqing, Sichuan, Qinghai and Xinjiang all increased by over 40% YOY. Second-hand housing turnover in most regions obtained YOY growth.

Second, the investment growth rate of the real estate development climbed back.

In 2009H1, the investment in Chinese real estate development totaled RMB 1.4505 trillion with a YOY growth of 9.9%. The growth rate increased by 5.8% compared with that in 2009Q1.

The investment growth rate of Chinese real estate development grew month by month since March 2009. Investment in the real estate development in some cities achieved a quite high growth rate: it grew by 40.6% YOY in Liaoning; 23.3% YOY in Shandong; 43.1% YOY in Hebei; 37.2% YOY in Hainan; 20.4% YOY in Hubei; 40.6% YOY in Yunnan; 40.6% YOY in Shanxi.

Third, the YOY decrease rate of the housing price reduced with the price increasing month by month.

In June 2009, the new commercial housing price in 70 large and medium cities declined by 0.6% YOY. The decrease rate reduced by 0.7% compared with that in May 2009. The price rose by 0.8% on a month-on-month basis with the growth rate higher than that in May by 0.1%. This was the fourth month for the price increase, showing an acceleration trend.

Moreover, in June 2009, the second-hand housing price in 70 large and medium cities grew by 2.2% YOY. The growth rate increased by 1.3% compared with that in May 2009. It rose by 1.1% on a month-on-month basis with the growth rate higher than that in May by 0.4%.

The housing price change varied from region to region. Among 70 large and medium cities, the new commercial housing price obtained a YOY growth in 34 cities while rose on a month-on-month basis in 63 cities; the second-hand housing price in 39 cities acquired a YOY growth while rose on month-on-month basis in 57 cities.

As a large group engaging in the real estate business since 2001, one of our clients ordered Report of Chinese Real Estate Industry, 2009. The client felt it necessary to read the report to understand Chinese economy, policies and the current status & future of Chinese real estate industry.

The report mainly focuses on:

Supplies of Chinese real estate market

Demands of Chinese real estate market

Government policies of Chinese real estate industry

Related industries of Chinese real estate industry

Investment of Chinese real estate market

Important enterprises of Chinese real estate industry

Property price trends in China 

Influences of international financial crisis on Chinese real estate industry

Factors affecting the development of Chinese real estate industry

Source: China Research and Intelligence

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