The real estate market in China is still waiting for possible favorable policies as the industry continues to face challenges. The market has undergone fundamental changes, and the operating mode of the real estate market is no longer the same as before. The summer solstice has passed, and the market is still waiting for a turning point.
In Beijing, 7 housing land transfers were sold on June 20, with a total transaction value of 18.9 billion yuan. This brings the total number of land plots sold in Beijing’s first round of commercial residential land projects to 23, with a total transaction value of about 71.2 billion yuan. The majority of land acquisition companies are central enterprises, state-owned enterprises, and urban investment companies.
However, the overall trend in the real estate market is still declining. According to the “January-June New Land Reserve Report of Real Estate Enterprises” released by Guandian Index, the top 50 real estate enterprises added 30.17 million square meters of land construction area, a year-on-year decrease of 29.7%. The decline has narrowed slightly, but it is still within the decline range.
Real estate companies are also facing challenges in sales. The total equity sales of the top 100 real estate companies in May were 363.3 billion yuan, a year-on-year decrease of 6.8%. From January to May, the cumulative equity sales of the top 100 real estate companies increased by 3.9% compared to the previous year.
The national real estate development investment from January to May was 4,570.1 billion yuan, a year-on-year decrease of 7.2%. The sales area of commercial housing decreased by 0.9% compared to the previous year, while the sales of commercial housing increased by 8.4%.
Most analysts believe that the current real estate market has failed to continue the recovery trend, and this situation is expected to continue in June. The confidence of real estate companies is still not stable, and the demand for home purchases is still uncertain.
The industry is eagerly waiting for the introduction of favorable policies to support the real estate market. The second half of the year is expected to be critical for the industry. In the meantime, the 2023 Boao Real Estate Forum will be held from August 7th to 10th in Hainan. The forum aims to provide a platform for industry experts to discuss the future of the real estate market.
Overall, the real estate market in China is still facing challenges and uncertainties. The industry is waiting for a turning point and hoping for the introduction of favorable policies to support its recovery.
How are central enterprises, state-owned enterprises, and urban real estate development enterprises shaping the dynamics of China’s real estate market
Ban real estate development enterprises.
However, despite these land transfers, the real estate market in China is still facing challenges. The market has experienced significant changes in recent years, and the way it operates is no longer the same as before. Many industry experts and investors are eagerly waiting for favorable policies that could potentially boost the market.
The summer season has come and gone, but the market is still anxiously awaiting a turning point. Beijing, being one of the key cities in China’s real estate market, witnessed the sale of 7 housing land transfers on June 20th. These transfers amounted to a staggering 18.9 billion yuan in total transaction value. This adds to the previous 16 land plots sold in Beijing’s first round of commercial residential land projects, bringing the total transaction value to approximately 71.2 billion yuan.
Interestingly, the majority of the land acquisition companies involved in these transactions are central enterprises, state-owned enterprises, and urban real estate development enterprises. These companies play a crucial role in shaping the dynamics of China’s real estate market.
However, despite these developments, the market is still waiting for potential game-changing policies. It is widely believed that such policies could introduce much-needed reforms and incentivize growth in the real estate sector. This anticipation stems from the understanding that the real estate market in China is vital for overall economic stability.
Industry experts and investors are hopeful that the government will introduce policies that address the current challenges faced by the real estate market. These challenges include issues like high property prices, overheating in certain regions, and an oversupply of unsold properties.
As the market continues to evolve, all eyes are on the policymakers for any indication of possible favorable policies. Such policies could potentially provide a much-needed boost to the real estate industry and help it overcome the current challenges it faces. Until then, the market remains in a state of anticipation, eagerly waiting for a turning point that could shape its future direction.
