National Real Estate Climate Index

Real estate market sentiment index

The real estate market sentiment index (RMSI) is an index that measures the level of overall sentiment and confidence in the real estate market. It is based on responses from real estate professionals, including brokers, sales agents, developers, and investors. The index is designed to provide a broad measure of real estate market sentiment.

Real estate market sentiment is important because it can affect many aspects of the market. It influences the confidence of buyers and sellers, the willingness of developers to invest in projects, and the availability of financing. A positive sentiment will prompt investors to take on additional risks, while a negative sentiment could lead to short-term volatility and longer-term declines in the market.

The RMSI is calculated by analyzing the responses of real estate professionals to a series of questions about current market conditions, expected future market conditions, and desired investments. The survey is conducted on a quarterly basis and is distributed to thousands of real estate professionals from all over the country.

The RMSI is composed of the following five components:

1. Current market sentiment: This component measures the sentiment of real estate professionals towards current market conditions. The responses are categorized into five sentiment types: bullish, neutral, cautious, bearish, and very bearish.

2. Future market outlook: This component measures the real estate professionals’ view of the future. The responses are categorized into five outlook types: optimistic, neutral, pessimistic, bearish, and very bearish.

3. Current investment activity: This component measures the level of activity in the market, from the perspective of real estate professionals. The responses are divided into five activity levels: high, moderate, low, bearish, and very bearish.

4. Future investment activity: This component measures the expected level of activity in the market over the next three months, from the perspective of real estate professionals. The responses are divided into five activity levels: high, moderate, low, bearish, and very bearish.

5. Risk appetite: This component measures the willingness of real estate professionals to take on additional risks. The responses are divided into three risk levels: high, moderate, and low.

The RMSI is a useful tool for both investors and industry professionals. For investors, the RMSI provides a gauge of sentiment in the real estate market that can be used to inform investment decisions. For real estate industry professionals, the RMSI can be used to gauge market sentiment and adjust strategies accordingly.

The RMSI has been updated quarterly since 2017 and provides a valuable indicator of sentiment in the real estate market. As the real estate market continues to evolve, the RMSI will continue to be updated to provide the most up-to-date information on sentiment and market outlook.

Chinas House Price Index (HPI) is a comprehensive index measuring housing prices in the country, which reflects the overall state of the countrys housing market.

The Index is based on Chinese housing market data from 70 individual cities, which are calculated after the weighted average of major cities, including first-tier cities such as Beijing and Shanghai, second-tier cities such as Guangzhou and Shenzhen, and third-tier cities across the country.

The Index provides a quantitative measure of the change in average house prices in major cities over time. It is divided into three categories: New Residential HPI, Second Hand Residential HPI and Residential Composite HPI.

In the first quarter of 2021, the total of new residential HPI and second hand residential HPI saw an increase by 0.5% and 0.6%, respectively. The real estate sector saw strong growth in the first quarter, supported by government policies to promote the development of the sector.

Looking ahead, the real estate sector is expected to remain healthy in the medium to long term, driven by favorable taxation policies and supportive measures taken by the local governments.

The residential house price index in China has become a reliable indicator of the overall health of the countrys housing market. With continued growth expected in the real estate sector, HPI is likely to play an increasingly important role in the economy, providing investors with valuable information about the state of the housing market.