Petrochemical
  Phone Storage Card
  Flavoring Industry
  Food Package Service
  Road Intelligent Traffic
  Medical Apparatuses
  Fruit Deep Processing
 
  Real Estate Industry
  Commuication Industry
  Two-layer Kettle
  Eduction & Publication
  Aluminum Nanoparticle
  Natural Gas
  Aquatic Products
  Commerce Industry
  Tourism of Beijing
  Agriculture
  Water Based Varnish
  Coal Activated Carbon
  Post and Telecom Industry
  Transceiver Equipment
  Ultraviolet Based Varnish
 
  Egg Products Processing
  Agriculture
  Beef & Cattle
  Organic Agriculture
  Mutton Sheep
  Water Product
  Eco-Agriculture
  Bean Milk Powder
  Deer Breeding&Processing
  Yoghurt Starter Market
 
  Post and Expres Post
  Track Shoe
  China Air Humi
  Soymilk Machine
  Headset Battery
  IPTV Operation Strategy
  Intelligent Mobile Phone
  Skin Medication Industry
  Educational Funds
  Fluorine Industry
  Mobile Phone Paint Industry
  Spirulina
  Detergent Products
  Luxury Dressing Products
  Crystal Market
  Massaging Product Industry
  Wool Blanket Industry
  Metal Sodium Market
  Salviae Miltiorrhizae Market
  VHF Wireless Telephone
  Airless Spraying Machine
  Barge Market
  Diesel Generators Market
  Mobile Phone Camera
  Color Matching & Blending
  Drinking Machine Industry
  Liquefied Natural Gas
  Silver Products Industry
  Cooperative Software
  Ice Machine Industry
  Grating Digital Display
  China's Mobilephone
  Chinese Cellphone Design
 

Research & Analysis Report on China Real Estate & Construction Industry from 2007 to 2009

Contents
Introduction 1
1. An Introduction to the Laws and Ordinances and Tax System on Real Estate 7
1.1. Ownership and Right of Use of Land 7
1.2. Laws and Ordinances on Operation and requisition of Land 8
1.3. Laws on Land and Construction 8
1.4. National, Provincial and Local Regulations on Land Use Right and Taxation 9
1.4.1 Law of the People¨s Republic of China on Urban Real Estate Administration(2008)!attachment3 9
1.4.2. Land Market 10
1.4.3 Land usages alteration 10
1.4.4.Land quota 11
1.4.5.Difference between ^affordable housing ̄ and ^commodity housing ̄ 12
1.4.6.Taxation process for real estate enterprises 14
1.5. Procedures for Purchase of Land 15
1.6. Land Ownership in the Chinese Law and Its Outcome 17
2. Laws and Ordinances on Urban Development and Construction 18
2.1. What Administrative Departments are in Charge of Urban Development and Construction ? 18
2.2. The general administrative rules for urban real estates in China 18
2.2.1 The general administrative rules for urban real estates in China 18
2.2.2.A typical real estate project, from its commencement to completetion, can be divided into the following 3 phases : 18
2.3. What departments is a land development project subject to the prior approval from? 19
2.3.I. Obtain the right to use of land and the channels for real estate development 19
2.3.2. Approval of the Investment Project 20
3.Who are the major participants in the real estate market ? 21
3.1. Who¨re the major players of the real estate market ? 21
3.2.What laws should private enterprises abide by ? 21
3.3. Regulating the Entry of Foreign Investment into the Real Property Market 22
3.4. Regulations on Administration of ForeignCInvested Construction Enterprises 24
3.4.1. Regulations on Administration of ForeignCInvested Construction Enterprises 24
3.4.2. CONSTRUCTION LAW OF THE PEOPLE'S REPUBLIC OF CHINA 26
3.4.3.Grading standards for construction enterprise qualification: 26
3.5.Catalogue for the Guidance of Foreign Investment Industries 27
3.5.1Catalogue of Encouraged Foreign Investment Industries 27
3.5.2 Catalogue for the Guidance of Foreign Investment Industries 27
3.6. The statistical information about the different types of real estate development enterprises in China 27
3.7. Foreign private enterprises on the real estate market 31
3.7.1. Foreign direct investments enter the real estate market in two manners : 31
3.7.2.The current conditions of foreign-funded real estate companies in China 31
3.7.3. The channels, forms and characteristics of the growth of foreign-funded real estate industries 32
3.7.4.Foreign-funded real estate businesses tend to be diversified in their growth. 33
3.7.5. Growth characteristics of the foreign-funded real estate businesses in China 34
3.8 Purview and term of foreign-funded enterprise examination and approval 36
3.9.Difference between joint-venture enterprise and contractual enterprise 36
4. How many industries are involved in the real estate industry ? 37
4. 1 How many industries are involved in the construction industry ? 37
4.1.1 Civil engineering industry 37
4.1.2 Wire、 pipe and equipment installation industry 39
4.1.3 Decoration industry 40
4.1.4 Prospecting and Designing 40
4.1.5 Construction Project Supervision 40
4.2. How many industries are involved in the real estate development industry ? 40
4.2.1 Real estate development and operation indsustry 40
4.2.2 Real estate management industry 42
4.2.3 Real estate brokerage and agency industry 42
4.2.4 Real estate insurance Real estate mortgage loan 42
4.3.Finance and Bank 42
4.3.1 Merger, Unification and Diversified Financing of Real Estate 43
4.3.2 Debt financing is the major formand stock right financing need to make break-through 44
4.3.3 The costs of real estate-oriented financing attracts close attention 44
4.3.4 Big drop in housing price will result in increase of non-performing assets of banks 45
4.3.5 Banks strengthen the enforcement of internal control measures 45
4.3.6 Fast growth of trust funds on real estate 45
4.3.7 Pool of money: Void of policy can¨t solve the existing problems 47
4.3.8 The real estate fund raising market has the following tendencies: 48
4.4、Problems existing in fundraising for real estate 49
4.4.1、Financial market environment needs to be improved 49
4.4.2、Policy environment needs to be optimized 50
4.4.3、Enterprise environment is in self a hindrance to financing 50
4.5. Commercial bank loans at home 51
4.6.Current financing conditions of the real estate industry 51
5. Construction market 53
5.1 Basic conditions of construction enterprises 53
5.2 An analysis of the overall economic operation and the performance of construction industry (2000-2008)
5.3、An analysis of the overall economic operation and the performance of construction industry 56
5.3.1 Areas of floor constructed and completed by construction enterprises during 1992-2008 56
5.3.2.Analysis of the changes in profit margin 56
5.3.3 The Overall Labor Productivity level of the construction industry in China during 1991-2008 57
5.4. Commercial buildings 58
5.4.1、Highway Construction Still Has a Fairly Big Market Opportunity 58
5.4.2、Urban tramway construction runs hot continuously 58
5.4.3、The fast grow in air freight increases the need for constructing airports 58
5.4.4、Seaport construction proceeds at faster speed and has a tremendous market 59
5.4.5、Water conservancy investment will remain at a fairly high level 60
5.4.6、Energy construction is an important segment of market for construction enterprises 61
5.4.7、There¨s still a fairly big demand for public facilities construction in urban areas 61
5.5 Position and importance of private enterprises 62
5.6.A Comprehensive Survey of Ten Construction Markets in China 63
5.6.1 Beijing Construction Market 63
5.6.2 Tianjin Construction Market 67
5.6.3 Shanghai Construction Market 71
5.6.4 The Construction Market in Shandong Province 72
5.6.5 The Construction Market in Jiangsu Province 74
5.6.6 The Construction Market in Zhejiang Province 76
5.6.7.The construction market in Chongqing Municipality 78
5.6.8.The construction industry in Shenzhen Municipality 78
5.6.9. The construction industry in Dalian Municipality 79
5.6.10 The construction industry in Hangzhou Municipality 79
5.7 A Comprehensive Survey of Ten Construction enterprise in China 79
6. Promotional campaign for real estate 80
6.1 The common tactics applied in China real estate promotion 80
6.1.1Direct discount and price reduction. 80
6.1.2Offer free gifts. 80
6.1.3Internal prices offered to employees. 80
6.1.4The group sales. 80
6.1.5Price protection plan. 80
6.1.6Lease first, and then sell. 80
6.1.7. Arrange the housing visit activities for consumers. 81
6.2 Commercial buildings 81
6.3. The ratio of private enterprises in the construction industry 82
6.4.General information about the real estate sales market in 10 major cities in China 85
6.4.1 Analysis on demand and supply in Beijing ¨s real estate market 85
6.4.2 Analysis on demand and supply in Shanghai¨s real estate market 87
6.4.3. Analysis on demand and supply in Guangzhou¨s real estate market 89
6.4.4 Analysis on demand and supply in Shenzhen¨s real estate market 90
6.4.5. Analysis on demand and supply in Tianjin¨s real estate market 92
6.4.6. Analysis on demand and supply in Wuhan¨s real estate market 93
6.4.7. Analysis on demand and supply in Chongqing¨s real estate market 94
6.4.8. Analysis on demand and supply in Nanjing¨s real estate market 95
6.4.9、Analysis on demand and supply in Hangzhou¨s real estate market 96
6.4.10、Analysis on demand and supply in Chengdu¨s real estate market 97
6.5 A Comprehensive Survey of Ten Real Estate enterprise in China 98
7. Characteristics of Construction Enterprises, General Information about the Construction Industry in China 98
7.1、The overview of construction enterprises 98
7.2、Characteristics of Construction Enterprises in China 99
8. Main characteristics of real estate sales in recent years 100
8.1、Overheated prices of commercial housing 100
8.2、The supply for small and medium-sized housings falling short of demand. 100
8.3、The housing problems in middle-income and low income families were elevated. 101
8.4、Since the fourth quarter of 2008, the adjustment and wait-and-see attitude began to appear in the market. 102
9. The urban disposable income per capita from 2002-2008 and its growth rate. 102
10 Development and prospect of real estate sales in the coming years 104
11. Is there any possibility for foreign real estate construction and development companies to develop in China? What can they bring to the Chinese real estate market? 105

11.1 The participation of foreign capital in the real estate market maintains gradual growing. 105
11.2 Structural improvement of real estate development With the continual deepening and enlargement of macro-control 106
11.4 China real estate in cooperation with overseas capital 107
11.5 Policy restrictions on foreign investment in real estate 107
11.6 For example 107
12. CONCLUSION 108
12.1 The China's economy witnesses a promising long-term growth trend 108
12.2 The China real estate market sees a promising long-term growth trend, and so does the China architecture market. 108
12.3 The China real estate market and the construction market are facing a huge capital shortage, and therefore real estate developers and builders have a great demand of foreign funds. 108
12.4 The China construction industry and real estate industry needs to introduce advanced foreign technologies and concepts. 108
12.5 China sees an optimistic long-term opening-up policy. 108

Fig. 1 China¨s GDP and CPI growth rate (%) for 1986-2008
Fig. 2 Trend of China¨s Fiscal Revenue Growth in Past Years 
Fig. 3 Trend of China¨s Fixed Asset Investment in 1982-1997
Fig .4 Trend of China¨s Fixed Asset Investment in 1997-2008.
Fig. 5 Real Estate Development Growth Rate for 1998-2008
Fig. 6 Changes in Commercial Housing Construction Indices in 1999-2006
Fig. 7 Selling Price Indices of Houses for 1998-2008
Fig. 8 Negative Correlation between the Housing Price Index and Actual Interest Rate in Our Country for 1998-2008
Fig. 9 Commercial Housing Supplies Increase with Years
Fig. 10 Price Indexes of Housing and Housing Land for 1998-2008
Fig. 11 Chart of taxation process for real estate enterprises
Fig 12 An analysis of the overall economic operation and the performance of construction industry (2000-2008)
Fig 13 Areas of floor constructed and completed by construction enterprises during 1992-2008
Fig 14 An analysis of the changes in the total profit margin of construction industry (1991-2008)
Fig 15 The Overall Labor Productivity level of the construction industry in China during 1991-2008
Fig 16 Accumulated Floor Space of Sold and year-on-year growth rate for the Commercialized Buildings during 1st quarter of 2005 and 4th quarter of 2008
Fig. 17 Supply and sales of commercial housing in Beijing during 2000-2008
Fig. 18 Variations in the commercial housing prices for Beijing during 2000-2008
Fig 19 Total investment and growth rate in Shanghai during 2000-2008
Fig. 20 Sales volume and growth rate for the commercial housing in Shanghai during2000-2008
Fig 21 Variation in the commercial housing sales volume for Guangzhou during 1995-2008
Fig 22 Variation in the commercial housing prices for Guangzhou during 1995-2008
Fig 23 Variation in the sales prices of the commercial housing in Shenzhen during 2001-2008
Fig 24 Sales volume and growth rate for the commercial housing in Tianjin during 1990-2008
Fig 25 Variation in the Floor Space of Commercialized Buildings Completed &Sold for Wuhan during 2003!2008
Fig 26 Monthly sales volume of the commercial housing sold in the city proper of Chongqing during 2008
Fig 27 Sales volume and growth rate of commercial housing in Nanjing during 2000-2008
Fig 28 Sales volume and growth rate for the commercial housing in Hangzhou
Fig 29 Variation in the Construction & Completed of the commercial housing for Chendu during 1996-2008
Fig 30 Per capita disposable income and its growth rate of the national urban residents during 2002-2008
Fig 31: Development trends of various natures of real estate development during 1997-2008

Chart 1 Main Indicators of Enterprises for Real Estate Development (2004-2008)
Chart 2 Number of Enterprises for Real Estate Development (1997-2008)
Chart 3 Sources of Funds of Enterprises for Real Estate Development during 2000!2008
Chart 4 Chart 4 Sources of Funds of Enterprises for Real Estate Development during 2004!2009(1-8)
Chart 5 Main Indicators on Construction Enterprises
Chart 6 Main Economic Indicators on Construction Enterprises by Registration Status (2008)
Chart 7 Main Indicators of Enterprises for Real Estate Development. (2004-2008)
Chart 8 Number of Enterprises for Real Estate Development. During1997-2008
Chart 9 Annual comparison among real estate investment, GDP and fix asset investment during 2002-2008
ATTACHMENT
I LAND ADMINISTRATION LAW OF THE PEOPLE''S REPUBLIC OF CHINA (2004 REVISION)
II INTERIM REGULATIONS OF THE PEOPLE'S REPUBLIC OF CHINA CONCERNINGTHE ASSIGNMENT AND TRANSFER OF THE RIGHT TO THE USE OF THE STATE-OWNEDLAND IN THE URBAN AREAS
III LAW OF THE PEOPLE¨S REPUBLIC OF CHINA ON URBAN REAL ESTATE ADMINISTRATION(2008)
IV CITY PLANNING LAW OF THE PEOPLES
V REGULATIONS ON THE MANAGEMENT OF FOREIGN-FUNDED URBAN PLANNING SERVICE ENTERPRISES
VI CONSTRUCTION LAW OF THE PEOPLE'S REPUBLIC OF CHINA
VII LAW OF THE PEOPLE¨S REPUBLIC OF CHINA ON FOREIGN-FUNDED ENTERPRISES
VIII RULES FOR THE IMPLEMENTATION OF THE LAW OF THE PEOPLE¨S REPUBLIC OF CHINA ON FOREIGN-FUNDED ENTERPRISES
IX Regulations on Administration of ForeignCInvested Construction Enterprises
X A Comprehensive Survey of Ten Construction enterprise in China
XI A Comprehensive Survey of Ten Real Estate enterprise in China

Copyright©2004-2012 Asia Consulting Alliance All Rights Reserved
井猖嗤 巖男JW 
奨ICPC050764