Fitch Ratings has estimated that China needs 800 million square meters of housing space every year until 2030 to build residential property. Said size of land is almost the same size as Singapore which means that the demand for new housing remains supple, according to a Fitch report released on Monday.
The approximation came from the assumption that over one-third of new housing necessity results from demolition of properties built before 1990. On the other hand, first time buyers triggered by marriage will decline after reaching its peak in 2013.
This estimate coming from Fitch Ratings arrived coincidentally during reports of overbuilding and unsold housing stock in different parts of China.
Xinhua news agency reported in July regarding development plans set for Chinese cities giving them a capacity to house 3.4 billion people — roughly 2.5 times China’s currently population and could inflame oversupply.
In 2015, China finished 737 million square meters of residential property which counts 8.8 percent lesser than the past year. During the first half of 2016, the completed residential housing space has increased from same period of last year for about 19.2 percent.