China Real Estate News Round Up 2010-12-30

As the year creeps to a close the market data continues to roll in showing the intense amounts of capital thrown into China’s real estate market this year and the price increases and investment projects that have come with it.

Today we see some comprehensive real estate market statistics released by the central government, a review of the government’s efforts to ensure affordable housing by a market research firm, Wanda Group opening new malls in rapid-fire fashion during December, and developer Greenland Group joining the rush into Nantong.

Chinese Real Estate Market Continues Fast Growth

Investment in China’s real estate sector in the first eleven months of 2010 grew by more than a third over the preceding year. China Real Estate Growth Shoots Up in 2010According to China’s National Bureau of Statistics, from January to November, the total investment in real estate development was RMB 4.27 trillion, up by 36.5% year-on-year. Of which, investment in residential buildings reached RMB 3 trillion, a 34.2% increase year-on-year, which accounted for 70.3% of the investment in real estate development. In November, the paid up investment in real estate development totaled RMB 462.8 billion, a year on year increase of 36.7%. In the past eleven months, the floor space under construction by real estate developer nationwide stood at 3.84 billion square meters, a year-on-year increase of 28.6%. In the past eleven months, land area purchased was 361 million square meters, up by 33.2%; and the value of land purchased amounted to RMB 893.1 billion, an increase of 77.9%.

From China Retail News

RESIDENTIAL

China May Need More Affordable Homes

China may need to build more affordable homes next year than the 10 million units planned as the target may not be “sufficient” to meet the country’s demand, according to a recent market report.

The government plans to almost double the 2011 supply of affordable housing from 5.8 million units this year as it introduces more measures to curb property speculation, Premier Wen Jiabao said in a radio broadcast on Dec. 26.

Increasing the supply of social housing is among measures China took this year to curb home prices. Property values rose for an 18th month in November after the government suspended mortgages for third-home purchases and a pledge to speed up trials of property taxes.

Only 6 percent of urban Chinese families live in social housing, which includes low-rent homes and apartments with controlled prices, according to a report by China International Capital Corp. in June.

From Bloomberg

RETAIL

Wanda Group Launches Five New Retail Projects in December

From 17th to 23rd December, Wanda Group launched five new Wanda Plaza projects in Guangzhou, Shaoxing, Wuhan, Fuzhou and Hefei cities. For all of 2010, Wanda Group opened a total of 15 new developments throughout China, which added an aggregate retail space of approximately 3 million sq m to its portfolio.

During this year, residential developers such as Vanke group, COFCO and Shimao have all expanded their projects to include retail development, which has created fierce competition in the sector. Industry observers point out that this growth in retail development has been spurred both by a rise in personal consumption by China’s population and diversion of resources from the residential sector to other areas which now suffer from fewer government restrictions.

From Top Retailing

LAND

Greenland Acquires Land in Nantong

Real estate developer Greenland Group acquired a 3,257 sq m plot of land zoned for mixed use in Nantong’s Xindong district in Jiangsu province. Acquired at a total price of RMB 760 million, the site has has a developmental GFA of 272,600 sq m and a permitted plot ratio of 3.27.which gives it an accommodation value of RMB 2,813 per sq m. The site borders Waihuan East Road to the east and Renmin Road to the south.

During 2010 many local developers have jumped into the Nantong market encouraged by its location around two hours’ drive from Shanghai and the spread of manufacturing enterprises from nearby Suzhou into the city. In October this year, Shanghai Poly Jianjing Real Estate part of the Poly Real Estate Group, purchased a plot of residential land in Nantong at a total price of RMB 1.5 billion, with an accommodation value of RMB 3,373 per sq m. With this latest acquisition, major local developer with projects in Nantong include Glorious Property, Beijing Vantone Real Estate and Greentown China.

From Guandian

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