The National Building Material Home Market Has Been Cold in the Beginning of the Year
time: 2018-12-09

Recently, the Department of Circulation Industry Development of the Ministry of Commerce and the China Construction Material Circulation Association jointly released the National Building Material Home Business Index (BHI) in January 2019. Data show that in January, the National Building Materials Home Prosperity Index (BHI) was 73.99, The ring-to-ring ratio dropped 19.74 points, down 5.83 points on a year-on-year basis. Sales of building materials and home furnishings above the national scale in January amounted to 61.7 billions yuan, down 32.88% annually and 9.46% year on year.

In 2019, the national real estate market started smoothly. According to the data of China Index Research Institute, in January 2019, the price of new housing in Baicheng New House rose steadily, moderately and slightly. The average price of new housing in 100 Chinese cities monitored was 14710 yuan per square meter, up 0.22% annually compared with that in other cities, while the supply scale of real estate in many places declined, and the market demand was relatively flat. With the market wait-and-see mood diffusing, the homecoming to purchase house became more rational, the transaction area of first-tier cities and property market ring ratio dropped significantly, most of the third and fourth-tier city property market also appeared cooling. Under the direct influence of the real estate market, the overall performance of the national building materials and household market will also decline steadily in January. Compared with the same period last year, the market is still in a weak steady state. Sales of building materials and household stores above the scale will drop by 9.46% compared with the same period last year.

At the same time, among the BHI sub-indices, we still need to pay attention to its "popularity index". In the case of other sub-indices falling more or less than the same period of the same year, it still continues the "high popularity" of 2018, rising to 28.88 points in January. Therefore, the Industry Research Department of China Building Material Circulation Association believes that in 2019, the "new retail" battle will continue, and the market competition in "developing smart home, building smart shopping malls, leading new demand and promoting consumption upgrading" will become increasingly fierce. How to turn traffic into customers, how to embrace the Internet better, how to make use of diversified channels organically, will be the key factors to win the market in 2019.

According to the PMI issued by the National Bureau of Statistics and China Logistics and Purchasing Federation in January, the PMI of China's manufacturing industry was 49.5%, which fell behind for four consecutive months, up 0.1 percentage points from the previous month.

The Industry Research Department of China Building Material Circulation Association suggests that the national building materials and household enterprises should remain cautious and optimistic in 2019. The transformation, upgrading and development of the industry will not be achieved overnight. In the process of grinding the bottom of the market, enterprises need to have patience in face of danger, courage to overcome challenges and seize opportunities to meet the future. After the bitter winter, spring will be abundant.

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