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China Real Estate Industry Report, 2006

Published: Nov/2006

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According to the National Bureau of Statistics of China, the national real estate investment has accumulative reached as many as RMB 1575.9 billion in 2005, increasing by 19.8% compared with 2004.

Real Estate Investment, 2001-2005


 

The total of RMB 1076.8 billion was invested into the commercial & residential property in 2005, increased by 21.9% compared to 2004, and its proportion in the total real estate investment also increased to 68.3% from 67.2% in 2004. Among which, the investment in economical affordable houses was RMB 56.5 billion, decreased by 6.8% compared to 2004, and its proportion also decreased to 3.6% from 4.6% in 2004; the investment in commercial houses was RMB 200 billion, increased by 6% compared to 2004 with a proportion of 12.7%; the investment in office buildings was RMB 74 billion, increased by 3.4% with a proportion 4.7%.

Real Estate Market Structure in China, 2005

China real estate maintains a rapid growth in 2006. The sales of commercial houses in 1Q 2006 was RMB 319.27 billion, increasing by 13.4% compared to 1Q 2005. The total real estate I\investment was RMB 279.268 billion in 1Q 2006, increasing by 20.2% compared to 1Q 2005, among which residential property investment shared 67.6%, in which economical applicable house investment shared 2.2%.The year-on-year growth of commercial house investment in the east China, central China and west China were 18.9%, 40.6% and 29.4% respectively.

With further improvement in real estate demand & supply and the market structure, the house price in 2006 tends to be steady on the basis of 2005.

Real Estate is the backbone industry and the hotspot of consumption in China. Under the macro control t, the industry tends to develop steadily. Overheating investment in some areas is restricted and a better atmosphere is thus created for sustainable development. The government will take more measures to support common residential houses but limit luxury houses and profit-drive projects.

Based on the data from National Bureau of Statistics of China, China Economic and Trade Committee, China Customs, China Social Economical Survey & Research Center, China Association of Real Estate, National Supervision Center of Economic Prosperity and other sources from home and abroad, this report describes China real estate market on the aspects of market demand, investment situation, competition pattern, sales status, development trend and company investigation.



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