Real Estate Investment New Normal: Low Single Digit Growth Is Good News

Real estate investment increased 4.6% YTD through June, but the single month figure remains below trend: June investment was only up 3.4% yoy. The one bright spot is sales, which are up sharply and rising. Price follows volume so there's reason for optimism, but investment is the main driver of economic growth. If you own an apartment (in a tier-one or top tier-two city), the sales uptick is good news, but if you're looking for real estate to pull economic growth higher not much good news other than those sales. Inventory reduction is still the name of the game for developers.

Source: 2015年1-6月份全国房地产开发和销售情况
More charts below.

Real Estate Investment Growth Rate

Land purchases by developers (area)

New Home Sales By Area (yellow) and Yuan (blue)

Developer Capital

No comments:

Post a Comment