Description
The National Real Estate Climate Index is released by the National Bureau of Statistics (NBS) of China and serves as a comprehensive indicator of the overall health of China's real estate market. The index uses 2012 as the base year, with a benchmark value set at 100, and encompasses eight key indicators, including real estate development investment, funding, construction area, and sales. It is adjusted to remove seasonal factors, reflecting random market fluctuations.
The index's movements are used to analyze cyclical fluctuations and future trends in the real estate market. When the index is between 95 and 105 points, it indicates a moderately prosperous market; a reading above 105 suggests an overheated market, while a reading below 95 indicates a sluggish market. An increase in the index typically signals an active real estate market with rising investment, development activities, and strong demand. Conversely, a decline in the index may indicate weakening demand, reduced investment, and the potential for a market cooldown.