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Real estate industry

China's Real Estate Sector Sees Rapid Growth in 2009

Strategic Insights

— 1 min read

China's banking industry continued to exhibit rapid growth in outstanding loans to the real estate sector in 2009, with financial institutions' outstanding loans to commercial real estate reaching 7.33 trillion yuan (US$1.1 trillion) by the end of the year. This represents a 38.1 per cent year-on-year increase, outpacing the overall loan growth by 6.7 percentage points. Notably, loans to real estate development experienced hyper-growth, with outstanding loans hitting 667.8 billion yuan at end-2009, a 100 per cent increase from 2008.

Key Takeaways:

  • Outstanding loans to commercial real estate reached 7.33 trillion yuan (US$1.1 trillion) by the end of 2009, up 38.1 per cent year-on-year.
  • Loans to real estate development exhibited hyper-growth, with outstanding loans hitting 667.8 billion yuan at end-2009, a 100 per cent increase from 2008.
  • The outstanding loans to real estate sector accounted for 19.2 per cent of all outstanding loans, a one percentage point increase from end-2008.
  • New loans to the real estate sector totaled 2 trillion yuan in 2009, accounting for 21.9 per cent of new loans, an 11 percentage point increase from 2008.
  • Individual home purchasing loans continued to rise throughout 2009, with a faster rate seen in H2, reaching 4.76 trillion yuan at end-2009, up 43 per cent year-on-year.
  • New loans for individual home purchases hit 1.4 trillion yuan in 2009, about five times the 2008 figure.

Statistics:

  • Outstanding loans to commercial real estate: 7.33 trillion yuan (US$1.1 trillion) by end-2009.
  • Year-on-year increase in outstanding loans to commercial real estate: 38.1 per cent.
  • Growth in loans to real estate development: 100 per cent from 2008 to 2009.
  • Percentage of outstanding loans to real estate sector: 19.2 per cent of all outstanding loans.
  • New loans to real estate sector: 2 trillion yuan in 2009.
  • Percentage of new loans to real estate sector: 21.9 per cent of new loans.
  • Growth in individual home purchasing loans: 43 per cent year-on-year by end-2009.
  • New loans for individual home purchases: 1.4 trillion yuan in 2009.

Sources:

  • 2009 Q4 Monetary Policy Implementation Report by the People's Bank of China, China's central bank.

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