Competition in China’s Real Estate Sector Begins to Change as Developers Specializing in Fast Turnaround of Projects Gain Significant Competitive AdvantagesBy Prne, Gaea News Network
Thursday, October 15, 2009
Competition among Chinese real estate companies became even fiercer in the third quarter of this year. According to the “Sales Rankings of Chinese Real Estate Companies for Q3 2009,” released by CRIC (China) Information Technology Co., Ltd., in cooperation with China Real Estate Appraisal and Shanghai E-house R&D Institute, Evergrande Real Estate Group, plans to go public in Hong Kong, surpassed a host of powerful real estate companies to top the sales list for the first time. Sina Leju was the first media source to announce the release of this report, part of which is as follows:
Higher threshold for companies to be listed
Following a second quarter boom, investors became more rational in the third quarter. Real estate transaction volume rose moderately in September following decreases in July and August, while average selling price maintained steady growth, contributing to increased sales in September.
The report reveals that, due to the economic recovery, thresholds for the lists rise further, with those for “Top 20 Chinese Real Estate Companies for the First Three Quarters of 2009 in Terms of Sales Revenue” and “Top 20 Chinese Real Estate Companies for the First Three Quarters of 2009 in Terms of Floor Space Sold” rising to RMB nine billion and 750,000 square meters respectively. Judging from CRIC (China) Information Technology’s current data, while there were only about 20 Chinese real estate developers with annual sales of at least RMB six billion in 2008, the threshold for this year’s list of the Top 20 Chinese real estate companies in terms of annual sales revenue is expected to be more than RMB 10 billion.
Companies with faster and more sustainable growth have clear advantages
Evergrande Real Estate Group, representing the rapidly-emerging new force in the Chinese property market, has now overtaken more established companies, becoming the leader in that market during the third quarter of 2009. Statistics show that Evergrande, which is seeking listing on the Hong Kong Stock Exchange and has recently passed the listing hearing by the Hong Kong Exchanges and Clearing, led in China’s real estate market in five categories including sales revenue for the 3Q of 2009, floor space sold during 3Q 2009, floor space sold during the first three quarters of 2009, and floor space under construction and land reserves at the end of 3Q 2009.
The report shows that Chinese real estate companies did not remain stagnant despite their accelerated de-inventory during the first half of the year. Some developers continued sales promotions, hoping to achieve further growth in 2009. Evergrande Real Estate Group had record sales volume, topping the list in terms of floorspace sold for the first three quarters of this year. Evergrande reported sales of RMB 12.33 billion for the third quarter, representing floorspace of 2.303 million square meters, topping both lists. As for comparing sales growth rates between the first half and 3Q of this year, sales increased 106.75 percent, while the amount of floorspace changing hands increased 103.09 percent, a doubling of its numbers in these two areas which placed Evergrande at the top of the two lists.
Evergrande is speeding up its plan to go public in Hong Kong, and its impressive performance for the third quarter undoubtedly helped the company prior to its public listing, according to industry analysts.
For more information, please contact: Kevin Fax: +86-10-5895-1005 Email: Kevinmts@sina.com
Source: Sina Leju
Kevin, +86-10-5895-1005 (Fax), or Kevinmts at sina.com
Tags: Beijing, China, Middle East, Sina Leju, Western Europe