shcri.com - In 2010H1, the sales area of commercial buildings in China amounted to 394 million m2, rising by 15.4% YOY; the growth rate dropped by 7.1% compared with that in January-May of 2010. The sales revenue of commercial buildings came up to CNY 1.98 trillion, 25.4% increase over2009H1; the growth rate declined by 13% compared with that in January-May of 2010. The gap between the sales revenue growth rate and sales area growth rate was reduced from 33% at the beginning of 2010 to 10% in June 2010. This indicates that the pressure of price growth of commercial buildings has decreased. It is predicted that the trend will continue in 2010H2. Thus, for a long period in the future, the growth of sales revenue will be promoted by the sales area instead of price.
The sales area growth rate was 12.7% for commercial residential buildings, 53.2% for office buildings and 41.6% for buildings for business use. In 2010H1, the sales revenue of Chinese commercial residential buildings rose by 20.3%; the growth rate was 91.5% for office buildings and 57.1% for buildings for business use. The growth rate of residential buildings is obviously lower than that of non-residential buildings. In particular, this trend becomes increasingly prominent after the release of the real estate regulation policy.
In 2010H1, the sales area growth rate was 15.4% in East China, 31.1% in Central China and 22% in West China; the sales revenue growth rates were 25.4%, 51% and 40% in the three areas separately. Obviously, the growth rate in East China is much lower than that in Central and West China. It is forecasted that this trend will sustain for a long period. The real estate markets in Central and West China assume high demand potential.
In 2010H1, the fund resources of real estate developers amounted to CNY 3.37 trillion, growing by 45.6% YOY. Among that, the domestic loans totaled CNY 657.30 billion with the growth rate of 34.5%; the foreign funds came up to CNY 25 billion, rising by 2.8%; enterprises’ self-raised funds were CNY 1.24 trillion in total, growing by 50.9%; other funds totaled CNY 1.45 trillion, rising by 47.9%. The other funds included CNY 806.40 billion earnest and advanced payment and CNY 453.80 billion personal mortgage loans, rising by 40.1% and 60.4% separately.
In terms of the fund resource structure, the percentage of domestic loans has dropped from 24% at the beginning of 2010 to 19% at present with a fall of 5%. The percentage of self-raised funds is now 37%, higher than that at the beginning of 2010 by 2%. The percentage of earnest and advanced payment is 24%, higher than that at the beginning of 2010 by 1%.
With the sustaining decline of the domestic loans’ percentage and continuous increase in the percentages of self-raised funds, earnest and advanced payment, the fund pressure of enterprises is increasing. With the shrinkage of the trading volume, the advanced payment will further decrease. In addition to the intensification of the refinancing difficulty in the capital market and banks’ control over credit line, the fund chain of developers will be tightened in the future.
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