In the January-November period of this year, total real estate investments in China amounted to RMB 12.1265 trillion ($1.7 trillion), up 10.2 percent year on year, with this growth rate 0.1 percentage point lower compared to that recorded in the January-October period this year, as announced by China's National Bureau of Statistics (NBS).
The main indicator influencing steel demand, the growth of new construction starts, also slowed down compared to the first ten months.
The total area covered by new construction activity in China in the first 11 months of the year increased by 8.6 percent, down 1.4 percentage points compared to an increase rate of 10.0 percent in the January-October period.
In the January-November period, new commercial real estate sold in China covered a total area of 1489.05 million m2, up 0.2 percent on year-on-year basis, 0.1 percentage point faster than the growth posted for the first ten months of the year.
Market participants and investors think that the real estate sector in China may perform better in 2020 than in 2019 following the Central Economic Work Conference held recently in Beijing at which the Chinese government stated, “China will work harder to ensure housing for the poor in cities, upgrade urban areas and lower existing housing stock, carry out renovation of old residential areas in cities and towns.” Accordingly, demand for rebar and wire rod in China is expected to receive a boost.