Impacted by the economic setback, the Chinese real estate industry slowed down since the second half of 2008. But pushed by the 4000 billion yuan ($590 billion) stimulus package from the Chinese government, the industry recovered since the first half of 2009.
It is forecasted that the China real estate market will keep increasing in 2009, and boom in 2010 and 2011, for the government has offered new policies to push the market. For example, the Chinese insurance companies have been allowed to invest in the commercial real estate market Since October 1st, 2009, which will bring the market a total investment of $50 - $100 billion in the next few years.
Investment Rose
The investment on the Chinese real estate market is recovering. In the first three quarter of 2009, China’s investment on real estate market reached 2.505 trillion yuan ($370 billion), increasing 17.7% from the same period of last year. The investment on commercial residential real estate was 1.7582 trillion yuan, increasing 13.8% from 2008.
Foreign Investment Decreased
As foreign money retreated from the Chinese real estate market due to a financial storm, Chinese companies raised more money through domestic channels. The foreign money was down to 35.9 billion yuan (US$5.3 billion) in the first three quarter of 2009, decreasing 26.2% from 2008. On the other hand, loans from the Chinese commercial banks increased 47.2% to 819 billion yuan, advanced payment increased 52.0% to 1.0269 trillion yuan, and personal mortgage loans increased 107.7% to 534.5 billion yuan from 2008.
Real Estate Projects Re-opened
Some real estate projects stopped construction in the last few months but reopened again. In the first three quarters of 2009, the newly opened real estate projects reached 732 million square meters, down 0.4% from 2008. But as old projects reopened, the real state projects under construction totally accounted 2.775 billion square meters, increasing 15.4% compared to 2008.
The real estate projects finished in the first three quarters of 2009 accounted 334 million square meters, increasing 24.7% from 2008. Among them 277 million square meters were residential housings. Residential real estate increased 26.7% from 2008.
SOURCE:http://flipping-real-estate.suite101.com/article.cfm/china_real_estate_market_recovers
It is forecasted that the China real estate market will keep increasing in 2009, and boom in 2010 and 2011, for the government has offered new policies to push the market. For example, the Chinese insurance companies have been allowed to invest in the commercial real estate market Since October 1st, 2009, which will bring the market a total investment of $50 - $100 billion in the next few years.
Investment Rose
The investment on the Chinese real estate market is recovering. In the first three quarter of 2009, China’s investment on real estate market reached 2.505 trillion yuan ($370 billion), increasing 17.7% from the same period of last year. The investment on commercial residential real estate was 1.7582 trillion yuan, increasing 13.8% from 2008.
Foreign Investment Decreased
As foreign money retreated from the Chinese real estate market due to a financial storm, Chinese companies raised more money through domestic channels. The foreign money was down to 35.9 billion yuan (US$5.3 billion) in the first three quarter of 2009, decreasing 26.2% from 2008. On the other hand, loans from the Chinese commercial banks increased 47.2% to 819 billion yuan, advanced payment increased 52.0% to 1.0269 trillion yuan, and personal mortgage loans increased 107.7% to 534.5 billion yuan from 2008.
Real Estate Projects Re-opened
Some real estate projects stopped construction in the last few months but reopened again. In the first three quarters of 2009, the newly opened real estate projects reached 732 million square meters, down 0.4% from 2008. But as old projects reopened, the real state projects under construction totally accounted 2.775 billion square meters, increasing 15.4% compared to 2008.
The real estate projects finished in the first three quarters of 2009 accounted 334 million square meters, increasing 24.7% from 2008. Among them 277 million square meters were residential housings. Residential real estate increased 26.7% from 2008.
SOURCE:http://flipping-real-estate.suite101.com/article.cfm/china_real_estate_market_recovers
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