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Domestic Landscaping Industry Expected to Recover in 2014

Abstract: According to the grouping model from local bureaus of urban utilities and gardening, and taking into account slightly increased costs in the future, we estimate that from 2011 to 2015, the CAGR of investment from bureaus of urban utilities and gardening in landscaping and afforestation will reach 13.65%. By the end of 2015, the market for bureaus of urban utilities and gardening is expected to reach 231.5 billion RMB.

 

This content of this article is chosen fromThe Market Analysis and Investment Trend Forecast for China’s Gardening Market from 2014 to 2019, published by the Industry information  

In the report issued from the Eighteenth Party Congress, it’s clearly pointed out that “ecological civilization should be prioritized, well integrated into economic development, political construction, cultural promotion, and social construction, in order to build a beautiful China, and ensure continuity and sustainable development of the Chinese nation.” At the third plenary session of the central party committee that had just wrapped up, it was proposed that we should set up a pre-warning system to monitor the stress on environment. Accordingly, restrictive measures should be adopted on water and land resources, the general environment, as well as maritime resources. An integrated land and maritime ecological mechanism should also be established to preserve and repair the environment and control pollution, eventually promoting ecological civilization. The Industry Information Website estimates that with the further implementation of the Suggestions to Improve Urban Environment from the Ministry of Housing, in the future China’s aggregate gardening demand will rise, which will create a large market lush with urban landscaping projects.

 

Summary of Recent Gardening and Environment Policies

Time

Document

Issuer

Main Content

March 2011

Instructions on Industry Restructuring 2011 Edition

NDRC

Encourage the development of urban gardening and the construction of environmentally-friendly neighborhood

June 2012

State Council’s Notice about Printing and Distributing the Development Plan for Energy Conservation and Environmental Protection During the Twelfth Five-year Plan

State Council

Expedite energy conservation and environmental protection industries, which are to grow at over 15% annually, by 2015, the value of the industries to reach 4.5 trillion RMB

November 2012

Instructions on Promoting the Healthy Development of the Gardening Industry

Ministry of Housing

By 2020, cities need finish the evaluation according to The Urban Afforestation Evaluation Standard, and at least reach the second level on a national level, of which national garden cities should reach the first level

January

2013

Recent Work Arrangement for Soil and Environment Protection and Treatment

State Council

Improve monitoring capabilities on soil quality, orderly promote demonstration of typical models in land pollution treatment

September 2013

Atmospheric Pollution Prevention and Treatment Plan

State Council

1. by 2017, the concentration of inhalable particulate matter should lower 10% compared with 2012, days with good air quality to increase year by year; 2.In Beijing, Tianjin, Hebei, Yangtze Delta Region and the Pearl River Delta Region, the concentration of fine particles to lower roughly 25%, 20% and 15%, of which the concentration of fine particles in Beijing to be controlled at around 60μg/m3

November 2013

Decisions on Important Issues about Deepening Reform by the Central Party Committee

3rd Plenary Session of the 18th Central Committee

1. Set up a pre-warning mechanism to monitor the stress on environment and natural resources, implement restrictive measures on water and land resources, the environment and maritime resources; 2. Stabilize and expand the scale of reforestation and recover pasture; adjust the usage of seriously polluted and dried up arable land, let arable lands and lakes recover; 3. Set up an integrated land and sea ecological mechanism to protect and repair the environment and treat and prevent pollution.

Source: Industry Information Website

 

According to According to the grouping model from local bureaus of urban utilities and gardening, and taking into account slightly increased costs in the future, we estimate that from 2011 to 2015, the CAGR of investment from bureaus of urban utilities and gardening in landscaping and afforestation will reach 13.65%. By the end of 2015, the market for bureaus of urban utilities and gardening is expected to reach 231.5 billion RMB. According to the statistics on landscaping for the real estate market, investment into landscaping took up 1-3% for regular housing, 2-5% in high-end housing, 1-2% in commercial housing. We believe high quality landscaping projects will act as a strong impetus later in sales. Future regular housing, high-end housing will increase input into landscaping projects. We estimate that from 2013 to 2015, regular housing, high-end housing and commercial housing will increase their input into landscaping to 2.5%, 4% and 1%. By 2015, the size of the landscaping market for real estate is expected to reach 230 billion RMB. The CAGR will be 14.51% from 2011 to 2015.

 

Therefore, in summary, by 2015, the market size of landscaping will reach 460 billion RMB, which will create space for development for the landscaping industry.

 

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