The real estate sector makes up a significant pillar of China's gross domestic product as the nation has to build places for its 1.4 billion population to live on a booming economy. This is particularly true in cities owning to the world's largest ever ongoing rural-urban migration.
- Investment in the property market grew 33.2% to ¥4.83 trillion, where investment in residential properties was up 32.9% to ¥3.4 trillion accounting for 70.5% of total investment;
- Property developers bought 410 million m2 of land valued at ¥999.2 billion, up 28.4% and 65.9% respectively from the year before; land price per m2 was up 29% to ¥2,437;
- Floor space started building grew 40.7% to 1.64 billion m2, and floor space built grew 4.5% to 760 million m2, where residential space built was up 2.7% to 612 million m2;
- Overall property space sales grew 10.1% to 1.04 billion m2, where growth of residential space was up 8%, growth of office space was up 21.9% and growth of commercial real estate space was up 29.9%;
- Property sales revenue grew 19.3% to ¥5.25 trillion;
- Banks lent ¥2.02 trillion to the property market, including ¥1.4 trillion in personal mortgages.
Predictions for the future of the Chinese property market differ greatly. Some argue it will continue to expand as local governments hinge heavily on incomes from land auctions to fund daily functioning. Some argue the bubble will burst soon as property prices are far beyond most people can afford.
The top five mainland-listed property developers by market value are
- China Vanke Co (SHE: 000002), based in Shenzhen, Guangdong
- Poly Real Estate Group Co (SHA: 600048), based in Guangzhou, Guangdong
- Shenzhen Overseas Chinese Town Co (SHE: 000069), based in Shenzhen, Guangdong
- China Merchants Property Development Co (SHE: 000024), based in Shenzhen, Guangdong
- Xinhu Zhongbao Co (SHA: 600028), based in Hangzhou, Zhejiang