In the January-March period this year, total real estate investments in China amounted to RMB 2.1963 trillion ($0.31 trillion), down 7.7 percent year on year, 8.6 percentage points slower than the pace of decline recorded in the first two months of the year, signaling an easing of the negative impact of the coronavirus pandemic following effective control measures, as announced by China's National Bureau of Statistics (NBS).
While the big year-on-year decreases in real estate sales - a major factor influencing steel demand – have slowed down, the growth of new construction has improved yet.
In the January-March period, new commercial real estate sold in China covered a total area of 219.78 million m2, down 26.3 percent on year-on-year basis, 13.6 percentage points slower than the declining pace recorded for the first two months.
At the same time, the total area covered by new construction activity in China in the January-March period this year increased by 2.6 percent year on year, 0.3 percentage points lower than the 2.9 percent rise recorded in the first two months and much slower compared to the increase rate of 8.7 percent in the full year of 2019.
In March this year, sales activities of real estate developers in China improved amid the resumption of construction activities, while developers were still cautious about making investments. However, with China’s moves to boost liquidity, investments will likely improve in the coming period.
$1 = RMB 7.0657