Beijing: Actively promote green buildings, prefabricated buildings, and ultra-low-energy buildings

On the afternoon of September 26, the Beijing Municipal Government held an executive meeting to study the civil building energy saving and carbon reduction work plan and the city's "14th Five-Year Plan" period civil building green development plan and pointed out that it will continue to promote civil building energy saving, carbon reduction and green development. It is necessary to strengthen scientific and technological support, actively promote green buildings, prefabricated buildings, and ultra-low-energy buildings, promote energy-saving transformation of public buildings, improve the level of building energy-saving design, and promote cost reduction and efficiency improvement. It is necessary to strengthen the role of market-oriented mechanisms, improve financial support policies, and use effective government investment guidance to leverage more social capital investment.

What is the scale of Beijing's prefabricated construction market

In order to further promote the development of prefabricated buildings in Beijing, the Beijing Municipal Commission of Housing and Urban-Rural Development issued the "Implementation Opinions on Further Development of Prefabricated Buildings (Draft for Solicitation of Comments)" on August 11, and publicly solicited opinions from the public. The draft for comments pointed out that by 2022, Beijing will realize that prefabricated buildings account for more than 40% of the newly built building area, and by 2025, the proportion of prefabricated buildings to new buildings will reach 55%. At the same time, the draft opinion pointed out that newly built prefabricated buildings should be fully decorated and finished products delivered, and the proportion of prefabricated decoration in affordable housing, commercial housing and public buildings should be gradually increased.

Analysis on the market situation of prefabricated construction in my country

As the overall planning of epidemic prevention and control and economic and social development have achieved remarkable results, the prosperity of my country's construction industry has also continued to rise. At present, the domestic manufacturing industry maintains a high boom, and the PMI reaches a new high. With the restoration of corporate profits, the transfer of overseas orders under the epidemic environment, and the continuous improvement of the domestic and international trade environment, it is expected that manufacturing investment will become one of the important drivers of fixed investment growth next year, thereby boosting demand in the construction industry. The general trend of the prefabricated construction industry is clear. After the obvious adjustments in the early stage, the prefabricated high-quality faucets have a strong price-performance ratio.

According to the statistics of the research report of China Research and Puhua, the 2021-2026 Edition of the Government Strategic Management and Regional Development Strategy Research and Consultation Report on the Prefabricated Construction Industry:

The economic development level of the Guangdong-Hong Kong-Macao Greater Bay Area leads the country. The Guangdong-Hong Kong-Macao Greater Bay Area city cluster is composed of 9 inland cities including Guangzhou, Shenzhen, Foshan, Zhaoqing, Dongguan, Huizhou, Zhuhai, Zhongshan, and Jiangmen, and two special administrative regions of Hong Kong, China and Macao, China. The total area is 56,100 square kilometers, accounting for 5.1% of China's land area. In 2019, the total population was 72.65 million, accounting for about 5% of the total population; the total GDP in 2019 was US$1.68 trillion, accounting for 12% of the national GDP; the per capita GDP was US$23,120 per person, nearly 2.4 times the national average. Up to now, Guangdong Province has 1 national prefabricated building demonstration city, 1 model city, 21 national prefabricated building industry bases, and 66 provincial prefabricated building industry bases. It has set a benchmark for the development of the prefabricated construction industry in the province and played a leading role in demonstration. In the first half of 2020, more than 14.73 million square meters of prefabricated buildings were started in Guangdong Province, accounting for 10.52% of the newly built building area. Among them, Shenzhen's newly started prefabricated construction area was 5.73 million square meters, a year-on-year increase of nearly 100%, accounting for 30.7% of the total newly started area, and the total construction scale of prefabricated buildings was nearly 30 million square meters, ranking first in the country. According to the newly-started area and plans of prefabricated buildings in Guangdong Province and various cities, the newly-started area of prefabricated buildings in the Guangdong-Hong Kong-Macao Greater Bay Area reached 21.56 million square meters in 2019.

According to the newly started areas and plans of prefabricated buildings in Guangdong Province and each city, the newly started areas of prefabricated buildings in the Guangdong-Hong Kong-Macao Greater Bay Area are as follows:

Chart: 2017-2020 New construction area of prefabricated buildings in the Guangdong-Hong Kong-Macao Greater Bay Area

Data source: China Research Institute of Puhua Industry

According to the development goals of prefabricated buildings in Guangdong Province, nine inland cities in the Guangdong-Hong Kong-Macao Greater Bay Area are key areas for promotion. The proportion of prefabricated buildings in 2020 will reach more than 20%, and the proportion of prefabricated buildings in 2025 will reach more than 35%. New construction in the Greater Bay Area will start in 2019, with an area of about 150 million square meters. It is conservatively estimated that the compound growth rate of newly built building area in the Greater Bay Area will be 2% in 20-25. It is conservatively estimated that the prefabricated building area in the Greater Bay Area will reach 59.12 million square meters in 2025.