High cost is still the pain point before the trillion level precast construction market blowout
There are still many pain points to face in the rational and constructive new precast construction market.
Local governments have also issued relevant rules.
According to the analysis of the above report, if according to the general requirements of the policy, precast buildings will account for 30% of the newly built building area in the next ten years, and the regions with more demand for new real estate are also regions with more efforts to promote precast buildings.
At present, there are few profitable enterprises in the industry, and only a few enterprises such as Dayuan Group have entered the market early.
The more specific plan of the policy makers is that the Ministry of Housing and Urban Rural Development released the 13th Five Year Plan of Action for Fabricated Buildings in March last year, which requires to comprehensively promote the development of precast buildings.
Wang Haishan, an expert member of the China Construction Industry Association under the Ministry of Housing and Urban Rural Development, and the chairman of the Beijing China Construction Association Certification Center Co., Ltd., held a seminar on the theme of “Developing Assembled Intelligent Buildings and Promoting the Modernization of the Construction Industry” on April 19, and believed that there were problems in the precast construction industry, such as lack of standards and specifications, lack of technical system, and lack of policy supervision.
The Report on Market Outlook and Investment Planning in China’s Fabricated Building Industry in 2018-2023 released by the Prospective Industry Research Institute predicted that, according to the requirements of the above plan for “the proportion of precast buildings in the newly built building area will be more than 15% in 2020”, the precast building area is expected to exceed 800 million square meters in 2020, and the market size will exceed 2 trillion yuan when measured at 2500 yuan per square meter.
The reason why there are no more enterprises involved is not only the lack of their own technology and industry standards, but also that enterprises do not realize that precast buildings are the green development direction.
Generally speaking, it means “building a house like a car” and “building a house like building blocks”.
The industry will move forward with pain, but once the stage mission is completed, the development of the construction industry will be a leap.
With the introduction of detailed rules and schedules for precast buildings, the entire market has reached the eve of a blowout.
It is predicted that the newly added residential area will increase by 3% every year.
In the Beijing Jinyuhuafu project, the precast rate of building structures exceeded 65%, the cost of precast construction was 1858.18 yuan/m2, and the cost of traditional cast-in-place method was 1583.46 yuan/m2, with a difference of more than 200 yuan per square meter..
By 2020, precast buildings will account for more than 15% of new buildings nationwide.
The so-called precast building refers to the type of building where precast components, such as walls and laminated plates, are produced according to standards in the enterprise workshop, transported to the construction site and mechanically spliced and installed.
As a solution to building industrialization, the innovation and exploration of this construction method can even be traced back to the 1950s.
According to the measurement caliber of different institutions, China’s real estate construction industry consumes about 40% of the total energy consumption in China.
From the standardization of design, factory production and mechanization of construction industry proposed at that time, to the modernization of the housing industry in 1999, to the modernization of the construction industry in 2010, and to the precast buildings in 2016, China’s exploration of ways to innovate in the construction industry is truly comprehensive.
According to the research of the World Bank, 70% of the emission reduction potential is in building energy conservation to achieve the goal of energy conservation and emission reduction by 2030.
In 2017, the Ministry of Housing and Urban Rural Development again proposed that by 2020, precast buildings will account for more than 15% of new buildings in China.
However, in this top-down development momentum, the new precast construction market still has many pain points to face.
Immediately, the State Council issued Several Opinions on Further Strengthening the Management of Urban Planning and Construction, proposing to strive to make precast buildings account for 30% of new buildings in about 10 years.
In the last two years, the policy makers and local governments have intensively released relevant documents.
Li Naichao, president of Beijing Chamber of Commerce for Housing and Real Estate Industry, told the Economic Observer that from the perspective of environmental protection needs, national policy guidance and other aspects, precast buildings are the development direction of the future construction industry.
In 2016, precast buildings were first written into the government work report, and then put forward by the State Council in a document, striving to make precast buildings account for 30% of new buildings in about 10 years.
Fabricated buildings appeared in the documents of the State Council in 2016.
Based on the average price of the existing precast buildings, the market size will reach 4.7 trillion yuan in 2025.
The precast construction market, known as the “construction revolution”, is spreading throughout the country in a top-down manner, but it also faces a series of pain points that the market must face in the early stage.
Zhang Weihong, general manager of Liebherr Machinery (Xuzhou) Co., Ltd.
Many insiders said that for the immature industry, the target of 30% has certain pressure.
in China, cited two cases in the aforementioned seminar.
The plan of the Ministry of Housing and Urban Rural Development mentioned that by 2020, more than 50 precast building demonstration cities, more than 200 precast building industrial bases, more than 500 precast building demonstration projects and more than 30 precast building science and technology innovation bases will be cultivated.
Li Naichao told the Economic Observer that China’s precast construction market is still at an early stage, and the industry development mainly depends on top-down promotion.
In an interview with the Economic Observer, Wang Haishan said that according to the 2016 national construction industry output value and the timetable of the State Council, if the market is fast enough, there will be at least a market of 6 trillion yuan in China’s precast construction market every year in the future.
The 2016 Government Work Report of the trillion market clearly proposed to actively promote green buildings and building materials, and vigorously develop steel structures and precast buildings.
The reporter of the Economic Observer noted that the agency’s conservative prediction of the market is also a hundred million.