Recently, the favorable policies of the property market in many places have been intensively introduced, releasing a more positive signal. The data shows that since 2022, the cumulative number of national real estate regulation and control policies has exceeded 80 times; as of now, more than 40 cities across the country have issued various real estate easing policies.
Seeing that spring is coming, the real estate market is showing signs of bottoming out, can the building materials and home furnishing market, which is closely related to the real estate market, usher in the spring and achieve a good start in 2022?
In January, BHI hit a new high in the calendar year, and the national building materials and home furnishing market made a good start
After experiencing the continuation of the epidemic last year, rising raw material prices, slowing market demand, cash flow pressure and other issues, the building materials and home furnishing market continued to be sluggish. With the marginal relaxation of real estate expectations and the decline in the high cost of raw materials, it improved slightly in January this year.
Let's look at a set of data.
The National Building Materials and Home Prosperity Index BHI jointly released by the Department of Circulation Industry Development of the Ministry of Commerce and the China Building Materials Circulation Association was 105.99 in January, down 17.24 points from the previous month and up 21.06 points year-on-year.
The sales of building materials and home furnishing stores above designated size in China in January were 99.36 billion yuan, down 16.87% month-on-month and up 31.52% year-on-year.
Comparison chart of BHI and national housing prosperity index from January 2021 to January 2022
January BHI and sub-index data
In January, some manufacturing industries entered the traditional production off-season, but the performance of the building materials market was not flat. With a strong consumption atmosphere brought by the New Year's Day holiday and the Spring Festival holiday, the sales of building materials and home furnishing stores above designated size in The country reached 99.36 billion yuan in January.
Due to factors such as the cold winter and the epidemic, compared with December last year, the "sentiment index" in January fell by 66.76 month-on-month, but rose by 35.94 points compared with the same period last year. At the same time, january this year, BHI hit a new high in the same period of the calendar year.
It can be seen that after experiencing the high level of the national building materials and home furnishing market last year and the recent signal of real estate policy relaxation, the suppressed just needs of the building materials and home furnishing market affected by the epidemic in the past two years are continuing to be released, and the market sentiment is gradually returning.
Under the background of the continuous stability of the mainland's macro-economy this year, real estate transactions have shown a gradual warming trend, and it is expected that there will still be more favorable policies in the follow-up. The real estate industry driven by policy support has rebounded, and there will be restorative growth in the building materials and home furnishing market.
Building materials manufacturers still need to be cautious
Although the building materials market heated up slightly due to the recovery of the real estate industry in January, the price increase in the building materials market continued when work resumed after the year.
Fortunately, after experiencing rain, snow and cold weather in all regions of the country, the north and the western region will take the lead in heating up from the 24th, and after the 24th, it will enter the stage of general temperature rise in most parts of the country, and a number of provincial capital cities will have a big recovery, when the pace of construction sites to resume work will accelerate, and the demand for building materials will also rise.
It should be noted that due to the repeated macro policies, the sharp fluctuations in raw material prices, the increase in freight prices caused by the obstruction of shipping, and the deterioration of the global economy more than expected, which will have a certain impact on the building materials market, it is recommended that building materials manufacturers across the country still need to remain cautious.
While grasping the development opportunities brought by the new round of consumption promotion policies, building materials manufacturers should also do a good job in the digital transformation of enterprises and the upgrading of products, improve the competitiveness of enterprises, actively respond to national policies, promote the development of green, environmentally friendly, healthy and safe building materials and home products, and enhance the characteristics and advantages of building materials sheets in carbon sequestration, emission reduction, safety and environmental protection.
*Explanation of terms: BHI
BHI is the abbreviation of the National Building Materials home prosperity index. It is a prosperity index of a building materials and home terminal store approved by the Department of Circulation Industry Development of the Ministry of Commerce and compiled and released by the China Building Materials Circulation Association.
It is compiled from the relevant data of 50,000 building materials and home furnishing merchants (shops) collected from designated centralized collection points across the country. BHI reflects the prosperity and market trend of building materials and home decoration materials, and at the same time, compared with the national real estate development prosperity index, it can also reflect the strength of rigid demand for real estate.
(Source: China Building Materials Circulation Association, Department of Circulation Industry Development, Ministry of Commerce)