The healthy development of Zhaoqing’s real estate industry

In 2004, the real estate industry in this city experienced healthy and stable growth. The investment on the industry was lively setting a new record of the total investment value. The land available for urban construction was further increased.  

1. The characters of real estate investment 

The price of commercial residential housing was slightly increased. Meanwhile, the total investment completed reached 1.749 billion RMB with a growth by 6.1%. The investment was mainly on commercial residential housing with 1.363 billion RMB growing by 10.2%, which took up 77.93% of the total investment on this industry. Among the investment, the amount on architecture installing reached 1.361 billion RMB with a growth by 10.9%, while the amount on land purchasing reached 257 million RMB with a growth by 2.4%.

           Table 1  The investment situation of all kinds of house developing 

The completed and constructed floor area of commodity houses decreased. In 2004, the total constructed floor area reached 2.23 million square meters, down 6.8%. Among them, the newly constructed floor area reached 913 thousand square meters, down 13.6%. The newly constructed floor area of commodity houses, office buildings and commercial houses were 83.9%, 1% and 8.7% respectively.  

The completed floor area of commodity houses reached 939 thousand square meters, down 20%. Among them, the completed floor area of dwelling households reached 814 thousand square meters, down 17.9%. The completed floor area of office buildings reached 7100 square meters, down 59.8%. The completed floor area of commercial houses reached 52,400 square meters, down 48.2%. 

The construction of affordable houses was strengthened. The affordable houses can not only satisfy the demand of low income families but also make the price of house towards the rational level. In 2004, the investment of affordable houses reached 25.57 million yuan, up 45.3%.

The state-owned enterprises were the main force of real estate investment. Because economy of Zhaoqing developed rapidly, the sale of commodity houses was very active and the price increased steadily. The investment of private enterprises reached 1.131 billion yuan, up 16.1%. The investment of state-owned enterprises reached 132 million yuan, down 12%. The investment of collective enterprises reached 219 million yuan, down 32.2%.  

The investment gathered in the inner city and the investment of some counties and districts increased differently. In 2004, the investment in the inner city reached 1.24 billion yuan, up 3.8%.

                          Table 2  The investment in every county and district  

The floor area of commodity houses sold declined but the price ascended in 2004.  The total floor area sold reached 880 thousand square meters, down 4.4%. Among them, the floor area of commodity dwellings reached 814 thousand square meters, down 1.3%. The floor area of office buildings reached 5300 square meters, down 71%. The commercial houses reached 47,400 square meters, down 52.2%. The other reached 13,700 square meters, up 52.2%. In 2004, the total amount of sale reached 1.587 billion yuan with 114 million yuan as tax.

Within the floor area of commodity houses sold, the floor area in inner city reached 533 thousand square meters, down 10.4%. The price of commodity hoses ascended a little. In 2004, the average price of commodity house sold was 1638 yuan per square meters. The average price of commodity house sold in inner city was 2005 yuan per square meters.

The demand and supply of commodity houses balanced and vacant commodity houses decreased. In 2004, the vacant floor area of commodity houses reached 539.8 thousand square meters, down 8.5%.

2. Some suggestions on the current investment of real estate of Zhaoqing City 

The real estate industry of Zhaoqing is developing rapidly and steadily but there still exist some problems needed to be solved.

2.1.  The procedure should be simplified by the government and the real estate projects should be coordinated well.

 2.2. The enterprises should be oriented by the market. Rational investment strategy should be insisted. According to the market, new development strategy should be set up.  

2.3. The overstock commodity houses need to be sold out. The developers should seize the good opportunity that the market is boosting and adopt all kinds of measures to activate the overstock. 

2.4. The real estate system should be perfected and the second level market should be cultivated.