More residential buildings being sold than started in China Jan-Aug
Building projects with a total area of 1068 million m² were
started in China during January - August (+12.2% compared to 2015). The figure for residential buildings was 736 million m² (+11.7%), according to National Bureau of Statistics of China. The increases are lower than they were during January - July, when all construction projects increased by 13.7% and the residential sector by 13.1%.
A total floor area of 875 million m² were
sold in China during January - August (+25.5% compared to 2015) of which 775 million m² were in the residential sector. When we break down the numbers in detail it shows that the sold floor area of residential buildings during January - August was +25.6%, office buildings +35.3% and buildings for commercial business +17.4%.
The floor space of residential buildings sold was larger than the area started during January - August. The difference was 39 million m². More homes being sold than started is of course a requirement for the large inventory of unsold homes in China to be reduced.
The trend line for started building projects in China in terms of floor space is decreasing.
The trend line for residential buildings under construction levels off at the lowest level in three years.
The total floor space of real estate for sale in China has increased significantly since 2012, when the measurements began. The floor space for sale decreased slightly in 2016, but remains at very high level.
The National Bureau of Statistics of China publishes a national real estate climate index every month. The index is based on several factors, such as real estate investments and sales. The index was at 93.70 in August (-0.3% compared to previous month, +0.3% compared to same month 2015). The index is at a low level.