In the January-July period of this year, total real estate investments in China amounted to RMB 7.2843 trillion ($1.04 trillion), up 10.6 percent year on year, with this growth rate down 0.3 percentage points compared to that recorded in the January-June period this year, as announced by China's National Bureau of Statistics (NBS). The decline in growth of real estate investments indicates that the cooling policies in the real estate industry, including tight financial policies and tight control of the land market, have come into play, resulting in real estate enterprises’ unwillingness to purchase land and lowering house sale prices.
Investments in residential dwellings in China in the first seven months of the year amounted to RMB 5.3466 trillion ($0.76 trillion), rising by 15.1 percent year on year, accounting for 73.4 percent of total real estate investments in the country during the given period.
In the January-July period, new commercial real estate sold in China covered a total area of 887.83 million m2, down 1.3 percent on year-on-year basis. The total area covered by new residential buildings sold in China in the given period decreased by 0.4 percent, the total area covered by new office buildings sold decreased by 10.8 percent, while the total area of new commercial business space sold during the given period was down 13.1 percent, all year on year.
On July 30, China’s Central Politburo had announced for the first time that China will not use the real estate industry as a short-term stimulus, thereby showing the central government’s determination to curb rises in housing prices and ensure the steady development of the real estate market. Market analysts consider that the growth in real estate investments in China will likely slow down further, thereby weakening demand for rebar and wire rod.