Report Shows: Brand Influence to Decide the Nature of Competition in China’s Real Estate Market

BEIJING -

According to “Sales Ranking of China’s Real Estate Developers in the First Three Quarters of 2009,” released by CRIC, China Real Estate Appraisal and E-house China R&D Institute on October 9th, the influence of branding will determine the nature of competition in China’s real estate market. Sina.com was the first media source to release these rankings, some of which are below.

Competition in the market will be determined by branding

Since the beginning of the year, in terms of both project sales and land reserves, market concentration has intensified dramatically, showing that brands have begun to determine the nature of competition in China’s real estate market. The real estate developers of China will engage in fierce competition with each other. Real estate developers with well-established names will be the leading players under these conditions. In the future, the nature of competition among real-estate developers will be influenced by the companies’ branding.

The rankings show that almost all companies have had good sales performance in Q3. The project concentration of the Top 100 is due largely to the work of the first six months of 2009. Meanwhile, high-end projects contributed much more to sales performance. Of the top twenty enterprises listed by sales value in Q3, high-end projects contributed up to 39% of the performance, up 20% from the first six months of 2009. This indicates that high-end projects have replaced medium-end projects as the main contributor of sales value in the first six months of 2009.

Evergrande is a leader

The release of these rankings further highlights Evergrande’s strength as a leader in China’s real estate market. Evergrande topped five rankings, namely sold area for the first three quarters, land reserves, area under construction as of the end of Q3, and sales and sold area in Q3.

According to the report, huge low-cost land reserves, an operation mode featuring rapid turnover, and imminent public listing will drive Evergrande to continue its leaping development.

Evergrande is the real-estate developer with the largest land reserves in China. Some data show that its land reserves will expand to approximately 51 million square meters. According to some insiders, land reserves of about 50 million square meters are ideal for large real-estate enterprise. Evergrande is also the real-estate developer with the largest area under construction in China. The rankings show that Evergrande has sold area of 2.303 million square meters in Q3.

For more information, please contact: Kevin Fax: +86-10-5895-1005 Email: Kevinmts@sina.com

Source: Sina Leju

Kevin of Sina, +86-10-5895-1005, or Kevinmts at sina.com