The real estate industry, a pillar of the national economy, picked up after more than a year of decline and showed a clear trend of recovery.
The most obvious characteristic of this round of recovery in the real estate market is an increase in housing transactions which have doubled in some cities.
According to data from the National Bureau of Statistics, in the first half of 2009, 315 million square meters of new commercial residential housing was sold across China, up 33.4 percent year-on-year. This growth rate was 24.7 percentage points faster than that in the first quarter.
In terms of regional distribution, sales in eastern China fully recovered, with those in Beijing, Jiangsu, Zhejiang, Fujian, Guangdong up by more than 50 percent year-on-year. Beijing, in particular, had a growth rate as high as 142.2 percent compared to the same period last year. Sales in central China recovered steadily, with those in Henan, Hunan, Jiangxi and other provinces up by more than 20 percent year-on-year. And sales in western China recovered fully and steadily, with Xinjiang Autonomous Region, Chongqing, Sichuan, Qinghai and other provinces up by more than 40 percent year-on-year. Second-hand housing transactions in most regions increased year-on-year.
The gradual recovery of investment in real estate development also helped the recovery of the market. In the first half of this year, investment in real estate development across China stood at 1.45 trillion yuan, up 9.9 percent year-on-year. This growth rate was 5.8 percentage points faster than that in the first quarter.
Capital of real estate enterprises has also increased significantly. From January to June, real estate developers newly obtained 2.37 trillion yuan capital, up 23.6 percent year-on-year. To be specific, 538.1 billion yuan came from domestic loans, up 32.6 percent, and 282.9 billion yuan come from personal mortgage loans, up 63.1 percent.
The recovery of investment in real estate development is also driving the steady growth of many up and down stream industries. An official from the China Construction Industry Association disclosed that since March, the recovery has spread to construction enterprises, and the number of new orders and projects under-construction have picked up steadily.
Meanwhile, decoration, fitting, building material and other related industries have also benefited from the recovery. The series of measures implemented by the central government to stabilize the real estate market and cope with the financial crisis have achieved some initial success.
By People's Daily Online