Forte August Sales increased by 192% YoY

Shanghai Forte just announced its contract sales for the month of August. The total attributable GFA for August 2010 was 167,196 sq.m and total amount was RMB 1.427 billion, which had an increase of 234% and 192% respectively YoY and an increase of 238% and 131% respectively as compared to July. So far, the accumulative attributable note GFA from January to August 2010 was 636,300 sq.m and accumulative amount was RMB 8.05 billion.

Benefiting from the continuous implementation of the fast selling strategy, reasonable price for new launched projects and active measures for promotion, good response from market has been received, which also resulted to the big increase on August sales.

Forte Chairman, Fan Wei, explained that the good sales result in August came from two aspects: (i) large scale of newly launched projects in 2nd tier cities; the balanced market supply and demand in 2^nd tier cities brought steady growth for Forte. (ii) newly launched projects in different cities were warmly welcomed by customers for their unique product positioning and human-oriented design, and the launching day sales rate amounted to 80%, a further increase as compared to June and July.

It was announced by Forte that most projects in the second half of 2010 would be in 2nd tier cities, and the newly launched GFA would be approximately 800,000 sq.m. The August sales result showed that the result contribution from 2^nd tier cities, such as Chongqing, Chengdu and Wuhan, has accounted for a very large proportion. Among that, Forte Gorgeous Lakeside which is located in Chengdu is warmly welcomed by the market with its unique product positioning and reasonable price, and the subscription rate was over 80% on the first day of launch. The Golf View Apartments were newly launched in Chongqing Uptown (phase V), and nearly 500 units were under deposit in the launching month with over 95% subscription rate, which was ranked in top 3 in Chongqing market.

The experts agreed that effect of this round of government policy has appeared In July and the price decreased by 10% to 15% as compared to April in some cities. Entering in August, developers in different cities gained transaction volumes by cutting down price, and volume began to increase in the market, thus sales results of some brand name developers like Vanke and Evergrande, etc. had a large increase.

But the data also showed that transacted area of residential properties in cities like Tianjin, Nanjing and Chengdu in August decreased by over 40% as compared to the same period last year. The level of market transaction volume still had a great difference as compared to the level before government measures. Meanwhile, due to the large increase on newly commenced development projects in the second half of last year, the 4^th quarter of this year would welcome the largest scale of new projects launches in recent years, which indicated that the market would still under pressure in the second half of 2010.

The president of Shanghai Forte, Zhang Hua, expressed that under such a market circumstance, flexible sales strategy and competitive products were the guarantee of good sales result. In the second half of 2010, Forte would still focus on 2nd tier cities, end-user demand and promote core-competency of the products. On the basis of the difference of products and diversities of various regional cities, reasonable price and fast selling strategy would be achieved by prudent and timely market analysis and highly efficient sales strategy.

Note: Including the sale of the equity interest of TianjinCenter