Bo Ya

China's real estate industry has recovered month on month this year, with the investment in real estate edging up in the first five months, and housing sales area surging 25.5%.

According to the data from the National Bureau of Statistics (NBS), China's national real estate climate index was 95.94 in May or 1.18 points up from April. The real estate climate index has 6 sub-indices, including property development, capital source and the area of land developed. Of this, the sub-index of investment in real estate development stood at 93.13, sub-index of capital source in the year was 96.62, and housing construction area, 93.93, rising

1.93, 2.32 and 0.46 points over the previous month respectively; sub-index of land development area was 92.55, and sub-index of idle commodity housing was 89.05, down 0.15 and 2.15 points month on month respectively.

The State Council, China's cabinet, issued the Circular on Adjustment of Capital Ratio Requirement for Fixed Asset Investment Projects on May 27, which adjusted the capital ratio required for ordinary commodity housing and low-cost housing projects to a unified rate of 20%, and the ratio for other real estate projects lowered to 30%, indicating an across-the-board easing of control over capital fund ratio of real estate projects, and further lowering the requirement threshold for real estate investment.

China's investment in real estate development reached RMB1016.5 billion in the first five months of this year, rising 6.8% year on year, including RMB710.5 billion in commodity residency housing, up 4.4%, and accounting for 69.9% of the total investment in real estate development.

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