Real Estate Developers:National property market monthly tracker October 2010

National commodity property transaction volumes in Oct came in at GFA92mn sqm, down 12% mom and up 15% yoy versus a 53% mom and 17% yoyincrease in Sept. Ytd as of end-Oct, volumes achieved GFA724 mn sqm, up9% yoy, rising from 8% in August. Meanwhile, Oct ASP was up 6% momand 11% yoy to Rmb5,543/sqm, which partially offset the mom slowdownof sales vol resulting in Oct property sales of Rmb510 bn, down 7% momand up 28% yoy, and Jan-Oct property sales of Rmb3,700bn, up 17%.

National property investment totaled Rmb456 bn in Oct, down 12% momand up 35% yoy vs. up 15% mom/ 32% yoy in Sept. We note propertyinvestment slightly dropped with GFA newly started in Oct down 15% momvs. up 52% in August. During the Jan–Oct period, property investment,GFA newly started, and GFA under construction were up 34%, 62%, and28% yoy, respectively.

National land purchases were up 10% mom in Oct, resulting in ytdnumbers of 328 mn sqm, up 36% yoy. Our monitor of 20 large cities’ landmarket activities indicates land transaction prices were down 39% mom,resulting in average ytd land price of Rmb2,659/sqm, up 17% yoy.