The investment on real estate development of Hunan Province grew by 37.2% in the first nine months of 2005

Sources: Information Research Center, Hunan Provincial Government

Under the effect of a series of the nation’s macroeconomic adjustment and controlling policies, the growth of the investment on real estate development in this province has been gradually diminished month by month from the 50% growth rate at the beginning of the year. Seen from the situation in the third season, the investment on real estate development is steady in general with slight occasional disturbance. The largest floating scale is no more than 2.2%. In the first nine months of 2005, the investment on real estate development has been growing at a rational rate with the efficient controlling on the blind large-scale development, which results in the satisfying real estate market sales.

1. The investment on real estate industry grew steadily

In the first nine months, the total accomplished investment on real estate of the whole province was 22.703 billion RMB with a growth of 37.2%. Compared to the same period of time, the growth rate drops 36.6%. Among all the investment, domestic investment reached 20.699 billion RMB with a growth of 43.1%, which took up 91.2% of the total investment on real estate development. The foreign investment was 819,000,000 yuan RMB, which is a rapid growth of 96.8% compared to the same time last year. This growth rate is 53.7% faster than the growth rate of domestic investment.

2. The available land for real estate development of the province has under effective control.

The total investment on the land construction for real estate development is 2.838 billion RMB with a growth of 7.3%. The growth rate drops 78.4% compared to the same time last year. The total land purchasing fees is 3.438 billion RMB with a total purchased land area of 12.495 million square meters. The growth rates for the total land purchasing fees and the total purchased land area are 1.7% and 16.4% respectively. By contract with the same time last year, the two growth rates witnessed slump drop back with 131.3% and 215.7% respectively.

3.  The investment on residential buildings still took up the major part of the investment.

In the first 9 months, the accomplished investment on residential buildings reached 14.112 billion RMB with a huge growth by 51.1% and 13.9% higher in growth rate than the average level of the whole province. This part of investment took on 62.2% of the total investment on real estate market of the province. The residential building area under construction reached 2.383 million square meters taking up 72.6% of the total area under construction.

4.  The consumption market of commercial buildings was prosperous with continuous rapid growth.

The total sales income from commercial buildings reached 10.337 billion RMB with a growth by 91.7%. The total area sold out was 6.53 million square meters with a growth by 80.5%. The growth rate on the income and area grew by 45% and 34.3% respectively. The total area of residential housing sold out was 5.702 million square meters with a growth of 84%. The total sales income reached 7.637 billion RMB with a growth by 113.5%. 90% of the sales were purchased by private household with a total area of 6.073 million square meters, among which the area of residential housing reached 5.326 million square meters. This took up 93.4% of the total realties on sale. The total sales income reached 9.725 billion RMB taking up 94.1% of the total income of the real estate market. While the income from sales of residential housing reached 7.637 billion RMB taking up 94.3% of the sales of commercial buildings.

5.  The major part of the investment and purchase capital came from private sources.

The loans from banks for the purpose of real estate investment and purchasing have been declining. In the first nine months of the year, the total capital in the real estate market reached 26.447 billion RMB with 1.4% faster in growth rate than the growth of the investment. 11.097 billion RMB of the capital came from private sources taking up 42% of the total capital available. The capital from other sources reached 9.545 billion RMB taking up 36.1%. Under the influence of the loan policy nation wide, the bank loans for real estate purpose have been decreasing. There were negative growth recorded in May, June and July. In September, the decline was gradually leveled off with a total amount of 5.143 billion RMB with a growth by 14.4% and 77.4% decrease in growth rate compared to the same period of the pervious year.

6. Seen from the perspective of the location of investment, the investment available was mainly from the six cities along the Beijing-Guangzhou Railway Line.

The total investment from these cities reached 18.461 billion RMB with a growth by 37.9% taking up 81.3% of the total investment of this province. The growth rate was 0.4% faster than the previous year in the same period. The investment in the provincial capital Changsha reached 12.695 billion RMB taking up 55.9% of the total investment of the province. This amount was three times the total investment of eight cities in the central and west of this province, while the growth rate was 12.4% higher than the provincial average level.

7.  The vacancy of commercial buildings also declined to some extent.

In the first nine months, the total vacant area was 1.187 million square meters with a decline by 9.6%. The vacant area of business buildings was 310,800 square meters with a growth by 21.6% though the construction area of business buildings was still on the rise. The vacant area of residential buildings reached 725,200 square meters with a drop by 18.6%. The economic residential buildings had 105,900 square meters as vacant areas and a decline by 25.7%. The vacant area of office buildings reached 50,500 square meters with a decline of 60.2%.

The construction of economic residential buildings has been under certain control. The vacant area of commercial buildings reached 310,800 square meters with a growth by 21.6%, while on the other hand, the newly completed area of commercial buildings was still on the rise. The total investment on commercial business offices reached 4.488 billion RMB with a growth by 61.7% and 24.5% higher than the average provincial level. The area newly under construction was 2.98 million RMB square meters with a huge growth by 76.9% and 48.1% higher than the average provincial level. This unhealthy development should be adjusted before more serious problems emerged.