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China's real estate market is booming PDF Print E-mail

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Tuesday, 10 November 2009

From January to October, China's total investment in real estate development amounted to 2,844.0 billion yuan, up by 18.9 percent year-on-year. Of which, investment in commercial residential buildings reached 1,995.4 billion yuan, or 14.1 percent of increase year-on-year, according to China's National Bureau of Statistics (NBS).

Total sales in the first 10 months amounted to 3,152.9 billion yuan, up by 79.2 percent year-on-year. Of which, the sales of residential buildings surged 84.3 percent, and the sales of office and commercial buildings increased 43.0 and 53.7 percent respectively.

The NBS says total funding reached 4,403.4 billion yuan, a year-on-year increase of 43.4 percent. Of the total, domestic loans amounted 911.9 billion yuan, foreign funds reached 37.7 billion yuan, self-funding hit 1,432.0 billion yuan, and other funds accounted for 2,021.8 billion yuan. However, the other funds consist of 1,175.5 billion yuan deposits and advantage payments and 616.3 billion yuan personal mortgage loans. As result, most of the funds may just have come from banks, which greatly increase the risk of banks' non-performing assets in the future.

In October, sales price indices of buildings in 70 medium-large sized cities increased 3.9 percent year-on-year, expanded 1.1 percentage points month-on-month.  The sales price indices of newly constructed residential buildings boomed 4.0 percent.

All real estate related indexes were up in October, the national real estate development climate index was 102.03, advanced 0.95 points month-on-month.

 
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