I. Completion Status of Real Estate Development Investment

From January to September 2016, nationwide real estate development investment totaled 7,459.8 billion yuan, representing a nominal increase of 5.8% year-on-year (with real growth—adjusted for price factors—of 7.1%). The growth rate was 0.4 percentage points higher than that from January to August. Among this total, residential investment reached 4,993.1 billion yuan, up 5.1%, with the growth rate increasing by 0.3 percentage points. Residential investment accounted for 66.9% of total real estate development investment.

From January to September, real estate development investment in the eastern region reached 4,130.3 billion yuan, up 3.6% year-on-year—a growth rate that was 0.3 percentage points higher than from January to August. In the central region, investment totaled 1,649.3 billion yuan, increasing by 10.9%, with the growth rate rising by 0.2 percentage points. In the western region, investment reached 1,680.2 billion yuan, up 6.3%, with the growth rate improving by 0.4 percentage points.

From January to September, the construction area of housing projects by real estate developers reached 716.029 million square meters, an increase of 3.2% year-on-year. The growth rate declined by 1.4 percentage points compared to the period from January to August. Among this, the construction area of residential buildings was 491.031 million square meters, up 1.7%. The area of newly started housing projects totaled 122.655 million square meters, an increase of 6.8%, with the growth rate falling by 5.4 percentage points. Of this, the area of newly started residential projects was 84.681 million square meters, up 6.7%. The area of completed housing projects reached 57.112 million square meters, an increase of 12.1%, with the growth rate declining by 7 percentage points. Among these, the area of completed residential buildings was 42.068 million square meters, up 11.3%.

From January to September, real estate developers acquired land totaling 149.17 million square meters, a year-on-year decrease of 6.1%. The decline narrowed by 2.4 percentage points compared to the period from January to August. The total amount paid for land transactions reached 556.9 billion yuan, an increase of 13.3%, with the growth rate rising by 5.4 percentage points.

II. Sales and Pending Sales of Commercial Residential Properties

From January to September, the sales area of commercial residential properties reached 105,185,000 square meters, an increase of 26.9% year-on-year, with the growth rate up by 1.4 percentage points compared to the period from January to August. Among these, the sales area of residential properties rose by 27.1%, that of office buildings by 33.5%, and that of commercial properties used for business purposes by 19.0%. The total sales value of commercial residential properties amounted to 8,020.8 billion yuan, up by 41.3%, with the growth rate increasing by 2.6 percentage points. Specifically, residential property sales increased by 43.2%, office building sales by 50.8%, and commercial properties used for business purposes by 21.7%.

From January to September, the sales area of commercial residential properties in the eastern region reached 510.13 million square meters, an increase of 29.3% year-on-year, with the growth rate rising by 1.9 percentage points compared to the period from January to August. Sales totaled 5,108 billion yuan, up 47.7%, with the growth rate increasing by 3 percentage points. In the central region, the sales area of commercial residential properties was 291.95 million square meters, representing a growth of 32.7%, with the growth rate increasing by 1 percentage point. Sales amounted to 1,624.7 billion yuan, up 44.6%, with the growth rate increasing by 2.9 percentage points. In the western region, the sales area of commercial residential properties was 249.76 million square meters, up 16.4%, with the growth rate increasing by 0.7 percentage points. Sales reached 1,288.1 billion yuan, up 17.9%, with the growth rate increasing by 1.6 percentage points.

As of the end of September, the area of commercial housing available for sale stood at 696.12 million square meters, a decrease of 125.8 million square meters compared to the end of August. Among this, the area of residential units available for sale decreased by 117.7 million square meters, the area of office buildings available for sale declined by 4.5 million square meters, and the area of commercial premises available for sale fell by 4.5 million square meters.

III. Status of Funds Received by Real Estate Development Enterprises

From January to September, real estate development enterprises received a total of 10,471.1 billion yuan in funding, representing a year-on-year increase of 15.5%. The growth rate was 0.7 percentage points higher than that from January to August. Among these funds, domestic loans amounted to 1,589.5 billion yuan, up 1.2%; foreign investment utilized reached 11.3 billion yuan, down 50.8%; self-raised funds totaled 3,657.4 billion yuan, up 0.8%; and other sources of funding reached 5,212.9 billion yuan, up 35.6%. Within the "other sources" category, deposits and prepayments totaled 2,961.8 billion yuan, up 31.5%; and personal mortgage loans reached 1,750.8 billion yuan, up 51.4%.

IV. Real Estate Development Prosperity Index

In September, the real estate development prosperity index (referred to as the "National Housing Prosperity Index") was 94.05, an increase of 0.35 points from August.

Note

1. Indicator Explanation

Real estate development enterprises’ investment completed this year refers to the total amount of investment completed during the reporting period, covering expenditures on housing construction projects, land development projects, as well as investments in public-benefit buildings and land acquisition costs. This indicator is calculated cumulatively based on the principle of physical progress.

Sales area of commercial housing: Refers to the total contractual area of newly built commercial houses sold during the reporting period (i.e., the gross floor area confirmed in the formal sales and purchase contracts signed by both parties). This indicator is a cumulative figure.

Sales of Commercial Residential Properties: Refers to the total contract price of newly built commercial residential properties sold during the reporting period (i.e., the total contract price confirmed in the formal sales and purchase contracts signed by both parties). This indicator is calculated using the same methodology as the sales area of commercial residential properties and represents cumulative data.

Saleable Area of Commercial Housing: Refers to the floor area of completed commercial housing units that are available for sale or lease at the end of the reporting period but have not yet been sold or leased. This includes both housing units completed in previous years and those completed during the current period; however, it excludes the floor area of housing units completed during the reporting period that are designated for demolition-reconstruction resettlement, collectively-built or entrusted construction projects, public supporting facilities, and housing units used or temporarily occupied by real estate companies themselves—these units are not eligible for sale or lease.

Funds in place for real estate development enterprises this year: Refers to various monetary funds and their respective sources that real estate development enterprises have actually available for real estate development during the reporting period. Specifically, these funds are categorized into domestic loans, foreign-funded capital, self-raised funds, and other sources. This indicator represents cumulative data.

Construction area of housing: refers to the total floor area of housing units under construction by real estate development enterprises during the reporting period. This includes the area of newly started projects in the current period, the area of housing units that carried over from the previous period and continued construction in the current period, the area of housing units that were temporarily suspended or slowed down in the previous period but resumed construction in the current period, the area of housing units completed in the current period, and the area of housing units that were under construction in the current period but subsequently suspended or slowed down again. For multi-story buildings, the construction area refers to the sum of the floor areas of all individual stories.

Newly Started Construction Area of Housing: Refers to the area of housing units newly commenced during the reporting period by real estate development enterprises, with each individual construction project serving as the accounting unit. This figure excludes the floor area of housing units that were started in the previous period but continued construction into the reporting period, as well as the floor area of housing units that were suspended or slowed down in the previous period but resumed construction in the current period. The commencement of housing construction is determined by the date when formal earthwork and trenching (including foundation treatment or installation of permanent piles) begins. The newly started construction area of housing refers to the total floor area of the entire building and cannot be calculated on a per-unit basis.

Completed floor area of housing: Refers to the total floor area of all residential buildings that have been fully completed during the reporting period in accordance with design requirements, meet the conditions for occupancy and use, have passed acceptance inspection and certification, or have reached the standards for completion acceptance, and can thus be officially handed over for use.

Land acquisition area: Refers to the area of land for which real estate developers have obtained land-use rights through various means within the current year.

Land transaction price refers to the final amount paid in land-use right transactions conducted by real estate development enterprises. In the primary land market, it encompasses the final allocation fee, the “bidding, auction, and listing” price, and the transfer price. In the secondary land market, it refers to the final contract price determined for land transfers, leases, mortgages, and other similar transactions. The land transaction price is measured using the same scope as the land acquisition area, enabling the calculation of the average land acquisition price.

2. Statistical Scope

All legal entities engaged in real estate development and operation.

3. Survey Methodology

Conduct a comprehensive survey on a monthly basis (except for January).

4. Brief Explanation of the National Real Estate Development Prosperity Index

The National Real Estate Development Prosperity Index is based on the theory of economic cycle fluctuations. Drawing upon business cycle theory and business cycle analysis methods, it employs time-series analysis, multivariate statistical techniques, and econometric analysis methods. Taking real estate development investment as the benchmark indicator, it selects relevant indicators such as real estate investment, funding, floor area, and sales volume. After eliminating the effects of seasonal and random factors, the index is compiled using a growth-rate cycle approach. The National Real Estate Prosperity Index sets the year 2000 as the base year, assigning it a value of 100. Generally speaking, an index reading of 100 points represents the most appropriate level; a range between 95 and 105 points indicates a moderate level; below 95 points signifies a relatively low level; and above 105 points suggests a relatively high level.

5. Division of Eastern, Central, and Western Regions

The eastern region includes 11 provinces and municipalities: Beijing, Tianjin, Hebei, Liaoning, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Guangdong, and Hainan. The central region includes 8 provinces: Shanxi, Jilin, Heilongjiang, Anhui, Jiangxi, Henan, Hubei, and Hunan. The western region includes 12 provinces, municipalities, and autonomous regions: Inner Mongolia, Guangxi, Chongqing, Sichuan, Guizhou, Yunnan, Tibet, Shaanxi, Gansu, Qinghai, Ningxia, and Xinjiang.

6. Growth Rate Calculation

The growth rate of real estate development investment is a nominal growth rate. Since the fixed-asset investment price index is calculated on a quarterly basis, except for the periods from January to March, January to June, January to September, and January to December—during which the actual growth rate of real estate development investment can be calculated—only the nominal growth rate is computed for all other months.