User:Wuwenhao19960507/Real estate in China

History

Before the Reform and Opening-up

The origins of modern real estate enterprises in China can be traced back to the mid-19th century. After the First Opium War in 1840, foreign powers established concessions in cities such as Shanghai, Guangzhou, and Tianjin. The influx of large populations into these areas led to increased housing demand, prompting both Chinese and foreign merchants to engage in the real estate business by inflating land prices and selling or renting newly built properties at high prices. By the 1920s, independent real estate companies had gradually replaced landlord-run rental agencies and offices, becoming the dominant force in China’s real estate sector. The industry experienced rapid growth until the full-scale outbreak of the Second Sino-Japanese War in 1937. After the war ended in 1945, the real estate market briefly recovered as wartime migrants returned home. However, with the eruption of the second phase of the Chinese Civil War in 1946, the industry began to decline. Prior to the establishment of the People’s Republic of China in 1949, foreign-owned properties in China totaled over 10 million square meters, concentrated in major cities such as Shanghai, Nanjing, and Beiping (now Beijing), and were held by entities from 34 countries including the United Kingdom and the United States.

From the founding of the People's Republic of China in 1949 until 1978, a fully public ownership economic system was implemented. Urban land was entirely nationalized, and all properties owned by the former Republic of China government and its military and political officials were confiscated. Foreign-owned real estate was also uniformly brought under state ownership. Remaining properties were turned into state assets through means such as takeover, requisition, debt repayment, or purchase. All public properties were managed uniformly by government departments. Initially, a small number of privately owned properties were allowed to operate legally, but these were gradually expropriated during the Socialist Transformation (of the means of production) and the 1958 state buyout, effectively eliminating the real estate industry as an independent economic sector.

Xuguangli, an old work unit-assigned residential compound in Nanjing （筒子楼）

Before the 1978 Reform and Opening-Up, Mainland China operated under a centrally planned economy. Productive real estate was funded and allocated by the state without compensation, while non-productive housing and employee residences were also planned, constructed, and distributed uniformly by the government. Urban housing followed a welfare allocation system based on the principle of “waiting for the state to build housing, relying on organizations for allocation, and depending on work units to provide housing.” Housing investment channels were singular and supply was limited, resulting in a serious imbalance between demand and supply. The long-standing low-rent housing policy imposed heavy financial burdens on both the government and enterprises. Under these conditions—limited funds and low resource allocation efficiency—residents often lived in overcrowded communal apartments (Communal apartments in China), and urban housing pressure grew increasingly severe.

The Commercialization of Housing Began

In October 1979, China's first commercial housing project, Donghu New Village in Guangzhou, was approved for construction. In January 1980, the Shenzhen Special Economic Zone saw the signing of the country’s first cooperative housing construction contract, as well as the establishment of the first real estate enterprise in mainland China — the Shenzhen Special Economic Zone Real Estate Company.

In June 1980, the Central Committee of the Chinese Communist Party and the State Council officially approved the implementation of housing commodification by endorsing the Outline Report of the National Conference on Capital Construction(《全国基本建设工作会议汇报提纲》). The policy permitted private individuals to build, purchase, and own residential properties. By October of the same year, 128 cities and several counties and towns across the country had launched pilot programs for private housing construction and sales.

On April 12, 1988, the First Session of 7th National People's Congress adopted a constitutional amendment, revising Article 10, Paragraph 4 of the Constitution. The original provision — “No organization or individual may usurp, buy, sell, lease or otherwise illegally transfer land” — was amended to: “No organization or individual may usurp, buy, sell or otherwise illegally transfer land. The right to the use of land may be transferred in accordance with the provisions of the law.” This amendment marked a constitutional recognition of the market-oriented nature of land use rights in China.

In May 1990, the State Council promulgated the Interim Regulations of the People's Republic of China Concerning the Assignment and Transfer of the Right to the Use of the State-Owned Land in the Urban Areas, officially launching the nationwide implementation of the paid land-use rights transfer system.

Annual Data on Real Estate Development and Housing Redevelopment

2014

In 2014, investment in real estate development in China reached 9,503.6 billion yuan, representing a year-on-year increase of 10.5 percent. Within this total, investment in residential buildings amounted to 6,435.2 billion yuan, up by 9.2 percent; investment in office buildings was 564.1 billion yuan, reflecting a 21.3 percent increase; and investment in buildings for commercial business totaled 1,434.6 billion yuan, an increase of 20.1 percent. In the same year, 5.11 million apartments were completed under the national urban affordable housing projects, while 7.40 million new units were initiated.

2015

In 2015, investment in real estate development in China reached 9,597.9 billion yuan, representing a year-on-year increase of 1.0 percent. Within this total, investment in residential buildings amounted to 6,459.5 billion yuan, up by 0.4 percent; investment in office buildings was 621.0 billion yuan, reflecting a 10.1 percent increase; and investment in buildings for commercial business totaled 1,460.7 billion yuan, an increase of 1.8 percent. In the same year, 7.72 million apartments were completed under the national urban affordable housing projects, while 7.83 million new units were initiated, including 6.01 million units as part of shantytown renovation efforts.

2016

In 2016, investment in real estate development in China reached 10,258.1 billion yuan, representing a year-on-year increase of 6.9 percent. Within this total, investment in residential buildings amounted to 6,870.4 billion yuan, up by 6.4 percent; investment in office buildings was 653.3 billion yuan, reflecting a 5.2 percent increase; and investment in buildings for commercial business totaled 1,583.8 billion yuan, an increase of 8.4 percent. At the end of 2016, the floor space of commercial buildings for sale stood at 695.39 million square meters, down by 23.14 million square meters compared with the end of 2015; the floor space of commercial residential buildings for sale was 402.57 million square meters, 49.91 million square meters less than that at the end of 2015. In the same year, 6.06 million housing units were started to be rebuilt in rundown urban areas nationwide. A total of 6.58 million housing units were either rebuilt in rundown areas or constructed as public rental housing. In rural areas, 1.58 million registered poverty-stricken households had their dilapidated houses rebuilt or renovated.

2017

In 2017, investment in real estate development in China reached 10,979.9 billion yuan, representing a year-on-year increase of 7.0 percent. Within this total, investment in residential buildings amounted to 7,514.8 billion yuan, up by 9.4 percent; investment in office buildings was 676.1 billion yuan, reflecting a 3.5 percent increase; and investment in buildings for commercial business totaled 1,564.0 billion yuan, a decrease of 1.2 percent. In the same year, 6.09 million housing units were started to be rebuilt in rundown urban areas nationwide. The number of housing units rebuilt in rundown areas was 6.04 million, while 0.82 million public rental housing units were built. In rural areas, 1.525 million registered poverty-stricken households had their dilapidated houses rebuilt or renovated.

2018

In 2018, investment in real estate development in China reached 12,026.4 billion yuan, representing a year-on-year increase of 9.5 percent. Within this total, investment in residential buildings amounted to 8,519.2 billion yuan, up by 13.4 percent; investment in office buildings was 599.6 billion yuan, reflecting a decrease of 11.3 percent; and investment in buildings for commercial business totaled 1,417.7 billion yuan, a decrease of 9.4 percent. In the same year, 6.26 million housing units were started to be rebuilt in rundown urban areas nationwide. The number of housing units rebuilt in rundown areas was 5.11 million. In rural areas, 1.57 million registered poverty-stricken households had their dilapidated houses rebuilt or renovated.

2019

In 2019, investment in real estate development in China reached 13,219.4 billion yuan, representing a year-on-year increase of 9.9 percent. Within this total, investment in residential buildings amounted to 9,707.1 billion yuan, up by 13.9 percent; investment in office buildings was 616.3 billion yuan, reflecting a 2.8 percent increase; and investment in buildings for commercial business totaled 1,322.6 billion yuan, a decrease of 6.7 percent. In the same year, 3.16 million housing units were started to be rebuilt in rundown urban areas nationwide. The number of housing units rebuilt in rundown areas was 2.54 million. In rural areas, 638,000 registered poverty-stricken households had their dilapidated houses rebuilt or renovated.

2020

In 2020, investment in real estate development in China reached 14,144.3 billion yuan, representing a year-on-year increase of 7.0 percent. Within this total, investment in residential buildings amounted to 10,444.6 billion yuan, up by 7.6 percent; investment in office buildings was 649.4 billion yuan, reflecting a 5.4 percent increase; and investment in buildings for commercial business totaled 1,307.6 billion yuan, a decrease of 1.1 percent. At the end of the year, the floor space of commercial buildings for sale stood at 498.50 million square meters, up by 0.29 million square meters from the end of 2019. The floor space of commercial residential buildings for sale was 223.79 million square meters, down by 0.94 million square meters. In the same year, 2.09 million housing units were started to be rebuilt in rundown urban areas nationwide, and 2.03 million units were completed. In rural areas, 742,100 registered poverty-stricken households had their dilapidated houses rebuilt or renovated as part of the concluding phase of the poverty alleviation programme.

2021

In 2021, investment in real estate development in China reached 14,760.2 billion yuan, representing a year-on-year increase of 4.4 percent. Within this total, investment in residential buildings amounted to 11,117.3 billion yuan, up by 6.4 percent; investment in office buildings was 597.4 billion yuan, reflecting a decrease of 8.0 percent; and investment in buildings for commercial business totaled 1,244.5 billion yuan, down by 4.8 percent. At the end of the year, the floor space of commercial buildings for sale stood at 510.23 million square meters, an increase of 11.73 million square meters over the previous year. The floor space of commercial residential buildings for sale was 227.61 million square meters, an increase of 3.81 million square meters. In the same year, 1.65 million housing units were started to be rebuilt in rundown urban areas nationwide, and 2.05 million were basically completed. A total of 0.94 million government-subsidized rental housing units were started or made available.

2022

In 2022, investment in real estate development in China reached 13,289.5 billion yuan, representing a year-on-year decrease of 10.0 percent. Within this total, investment in residential buildings amounted to 10,064.6 billion yuan, down by 9.5 percent; investment in office buildings was 529.1 billion yuan, reflecting a decrease of 11.4 percent; and investment in buildings for commercial business totaled 1,064.7 billion yuan, a decrease of 14.4 percent. At the end of the year, the floor space of commercial buildings for sale stood at 563.66 million square meters, up by 53.43 million square meters compared to the previous year. The floor space of commercial residential buildings for sale was 269.47 million square meters, an increase of 41.86 million square meters. In the same year, 1.34 million housing units were started to be rebuilt in rundown urban areas nationwide, and 1.81 million were basically completed. Additionally, 2.65 million units of government-subsidized rental housing were started or made available, and renovation work began on 52,500 old urban residential communities, benefiting 8.76 million households.

2023

In 2023, investment in real estate development in China reached 11,091.3 billion yuan, representing a year-on-year decrease of 9.6 percent. Within this total, investment in residential buildings amounted to 8,382.0 billion yuan, down by 9.3 percent; investment in office buildings was 453.1 billion yuan, a decrease of 9.4 percent; and investment in buildings for commercial business totaled 805.5 billion yuan, down by 16.9 percent. In the same year, the floor space of newly built commercial buildings sold reached 1,117.35 million square meters, and the floor space of second-hand housing online transactions was 708.82 million square meters. At the end of the year, the floor space of newly built commercial buildings for sale stood at 672.95 million square meters, among which the floor space of commercial residential buildings for sale was 331.19 million square meters.

2024

In 2024, investment in real estate development in China reached 10,028.0 billion yuan, representing a year-on-year decrease of 10.6 percent. Within this total, investment in residential buildings amounted to 7,604.0 billion yuan, down by 10.5 percent; investment in office buildings was 416.0 billion yuan, a decrease of 9.0 percent; and investment in buildings for commercial business totaled 694.4 billion yuan, down by 13.9 percent. In the same year, the floor space of newly built commercial buildings sold was 973.85 million square meters, while the floor space of second-hand housing online transactions reached 718.12 million square meters. At the end of the year, the floor space of newly built commercial buildings for sale stood at 753.27 million square meters, among which the floor space of commercial residential buildings for sale was 390.88 million square meters.