Volumes of new construction for 11 months fell by 21.2% y/y

In January-November 2023, total real estate investment in China amounted to 10.4 trillion yuan ($1.5 trillion), down 9.4% from the same period last year. This is reported by SteelOrbis with reference to the National Bureau of Statistics (NBS).

Sales of commercial real estate in the country fell by 8% year-on-year – to more than 1 billion square meters in the period under review. This increases pressure on the authorities to step up efforts to support demand in the sector.

The volume of new construction by area in January-November 2023 fell by 21.2% y/y after falling by 23.2% in the first ten months of the year. The total area of construction work for 11 months decreased by 7.2% compared to the same period last year.

According to the Central Economic Work Conference, China will actively but prudently reduce risks in the real estate industry and promote stable and reliable development of the industry. In addition, the country will accelerate the construction of government-subsidized housing and public infrastructure and the restoration of villages within metropolitan areas. The situation in the Chinese real estate market is expected to improve in 2024.

As GMK Center reported earlier, in January-October 2023, investments in real estate in China have decreased by 9.3% year-on-year – to 9.6 trillion yuan ($1.32 trillion). According to a study by CITIC Securities, China’s largest investment bank, new floor space covered by construction activity in the country is expected to decrease by 15% in 2024, and total real estate investment will decrease by 8.8% compared to 2023.