Real Estate Development January – November 2017 Investment in Chinese real estate in the first eleven months of 2017 increased 7.5% year-on-year but the pace of growth slowed. Investment in residential buildings expanded almost 10% over the same period. 
In the first eleven months of 2016 the land area purchased by the real estate development enterprises was up by 16% year-on-year and the pace of expansion grew. 
See: http://www.stats.gov.cn/english/PressRelease/201712/t20171219 _1564825.html Last year property sales slowed because of measure introduced by the government to cool an over-heated market.
The unexpected effect of the government action has been to concentrate real estate development in the hands of the major companies at the expense of smaller enterprises say analysts. This has occurred as the larger companies have better access to credit from banks, better access to land via regional governments and because they successfully weathered the housing market downturn in 2016.
According to China Index Academy, an independent property research organisation, the market share of the top 10 developers in Beijing grew from 35% to 49% between 2016 and 2017 a trend that has been observed in other major cities across China.
See: http://industry.fang.com/en/default.html
End to volume checks on imported timber China’s General Administration for Quality Supervision, Inspection and Quarantine has announced that the requirement for checking the volume of imported timber has been terminated. This, say analysts, was decided in order to facilitate faster clearance for the ports and could lead to lower transit costs for importers.
Information in Chinese can be found at: http://www.aqsiq.gov.cn/xxgk_13386/jlgg_12538/zjgg/2017/201 710/t20171030_500681.htm
Closure of timber enterprises in Taicang city It has been reported that a zero tolerance measure has been taken on pollution from wood processing factories in Taicang City. This is part of the action on environmental pollution controls in Jiangsu province. An official notice (20 December 2017) was posted declaring that all wood processing factories in Taicang City must immediately cease production. All wood processing companies are required to relocate before 20 January this year.
A copy of the official notification can be seen at: http://www.yuzhuwood.com/news/details_40287d73606f5d8e01 607eb389680d8b.htm
Firm demand for custom home furnishings It has been reported that due to the growing environmental awareness amongst consumers, demand for ‘green’ custom made home and household goods is rising. The products in demand include wooden doors, cabinets, dinning furniture, and wood panels and furniture and makers of custom made items report that they are able to secure a price premium for custom made items.
Rise in log imports through Xiamen According to the Xiamen Entry-Exit Inspection and Quarantine Bureau, log imports through Xiamen Port totaled 1.905 million cubic metres valued at US$46 million in 2017, up 10% in volume and 11% in value compared to 2016.
The imported logs were from 37 countries with New Zealand, Australia, the USA and Estonia topping the list in terms of volumes. Imports from New Zealand totaled 962,000 cubic metres valued at US$130 million and accounted for over 50% of the total volume and total value of imports through Xiamen Port.
The volume and value of imported logs from Estonia rose 103% and 138% respectively in 2017. According to the statistics, imported goods from Estonia through Xiamen port were valued at US$9.42 million of which 98% were logs.
The species of imported logs through Xiamen port are radiata pine, spruce, scots pine, ponderosa pine and loblolly pine but over 70% of the logs imported were radiata pine.
Wood products trade in Guangdong province Imports According to Guangdong Entry-Exit Inspection and Quarantine Bureau, between January and November 2017 log imports into Guangdong Province rose 11% to 34.67 million cubic metres. Sawnwood imports were 8.51 million cubic metres, up 21% over the same period in 2016.
On the other hand, MDF imports dropped 13% to 72,500 cubic metres. Particleboard imports in Guangdong Province amounted to 194,700 cubic metres, a year on year increase of 41%, accounting for 21% of the national total. Many furniture manufacturers in Guangdong province imported high quality particleboard to produce furniture.
Plywood imports into Guangdong Province fell 14% to 65, 800 cubic meters, accounting for 38% of the national total.
The value of Guangdong wooden furniture imports surged 95% to US$166 million between January and November reflecting increased disposable incomes and rising living standards of residents in the Province.
Exports Plywood exports from manufacturers in Guangdong Province fell in the first 11 months of 2017 with the largest drop seen in exports to the US, the largest market for Guangdong based companies.
Plywood exports from Guangdong to the US, South Korea, the UK, and Saudi Arabia fell 15%, 21%, 12% and 26% respectively. However, plywood exports to Japan rose 6% and trade with Hong Kong rose to 172,200 cubic metres, representing a large part of exports from Guangdong.
MDF exports from makers in Guangdong Province rose 11% to 119,600 cubic metres in the first 11 months of last year. MDF exports to traditional markets such as to the US, Canada, South Korea and Iran fell.
In the case of particleboard, exporters in Guangdong Province are tapping new markets such as Nigeria (180,000 cu.m), Vietnam (147,100 cu.m), India (49, 500 cu.m) and United Arab Emirates (130,000 cu.m).
  
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