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Real Estate Investment (REI) has been a key driver of China’s economic growth for well over 10 years, accounting for between 12 and 20 percent of Chinese GDP in recent years. There is great concern about the potential impacts of an REI slowdown.
The National Statistics Bureau (NBS) of China says that the sales of real estate by developers (Developer-REI) shrank by 8.9 percent in the first three quarters of 2014. Our research shows, however, that Developer-REI accounts for about only 29 percent of total floor space completed in 2013.
The difference is due to Non-Developer-REI. This is a large category of various types of buildings including self-built commercial and residential buildings, affordable housing, and apartments built with funds pooled from the buyers, etc.
Download the Chart of the Week to see the full picture.