[Guangzhou Daily] In the first three quarters, Evergrande won five championships

Source: Guangzhou Daily

Data show that: China's Top 20 real estate achieve sales of 350 billion and the contribution rate of secondary cities exceed that of primary cities
CRIC (China) affiliated to China s E-house (China) and China Real Estate Appraisal Center released data which showed that in the first three quarters of this year, China's Top 20 real estate companies reached the sales amount of 350 billion with the contribution rate of secondary cities exceeding that of primary cities and Vanke remaining in the first place with the sales amount of 42.646 million yuan, but Evergrande Real Estate won five championships in terms of sales area for the first three quarters, sales amount for the third quarter and area of reserved lands. Text / Table Reporter Zhang Zhong an
Recently, CRIC (China) affiliated to China s E-house (China) and China Real Estate Appraisal Center released the statistical report on the sales of real estate enterprises for the first three quarters, which showed that in the first three quarters of this year, the sales amount and area of top 20 developers included in the monitoring respectively reached 348.8 billion yuan and 43 million square meters.
The real estate market recovers rapidly this year, so that the sales performance of real estate developers rises. In the first three quarters, Vanke sales amounted to 42.646 billion yuan, stably remaining in the first place. Guangzhou Evergrande Real Estate won five national championships in five indicators in the first three quarters after experiencing two severe winters .

Evergrande Real Estate s sales area ranked first

Data show that from January to September this year, Evergrande Real Estate s sales amounted to 24.18 billion yuan, ranking fifth in China, but the company's sales area for the third quarter reached 2.303 million square meters and its sales amount reached 12.33 billion yuan, so Evergrande won two rare champions. In terms of area of reserved lands in the country, Evergrande Real Estate ranked first with more than 51 million square meters. In addition, the construction area of 17 million square meters is dominant. From the sales growth rates of the third quarter and the first half of the year, Evergrande Real Estate ranked first in the growth of both the sales area and amount, respectively 103.09% and 106.75%, achieving double growth rates. The experts of CRIC (China) said that the performance of Evergrande Real Estate in the first three quarters of this year fully demonstrated its strength. The large area of low-cost reserved lands, an operation mode of rapid turnover and the imminent public listing will drive Evergrande Real Estate to continue its leap-type development.
The hot house market has also promoted the land market actively. The report shows that in the first three quarters of this year, the total construction area of newly bought lands reaches of only top 10 real estate enterprises 24.62 million square meters and their total investment reaches about 71.9 billion yuan from January to September. The newly bought reserved lands for the third quarter ranked first with the construction area of about 17.92 million square meters, accounting for 72.79% of those for the first three quarters, and with the investment amount of about 57.9 billion yuan, accounting for 80.53% of the first three quarters, both of which exceeded the sum of the previous two quarters.

Secondary and tertiary cities became the main battlefield of sales

econdary and tertiary cities highlighted sales for developers from January to September. The sales area exceeded 50% of total sales areavespecially in the secondary cities with a great potential. Four primary cities Beijing, Shanghai, Guangzhou and Shenzhen became gradually saturated, while the real estate markets in secondary and tertiary cities were gradually warming up and real estate giants and capital giants found this great historical opportunity, so they frequently seized the opportunity.
According to the investigation of CRIC (China) and China Real Estate Appraisal Center into top 20 enterprises for the first three quarters by the cities, the sales area and amount that these enterprises achieved in secondary cities all ranked first, especially the sales area, accounting for 54 % of the total, far exceeding that of other cities. Their sales amounted to 41% of all the projects, 1% higher than that of the first half of the year. Evergrande Real Estate, which arranged important strength in secondary cities, started 31 new projects in September in Kunming, Changsha, Nanjing, Xi'an and other secondary and tertiary cities, which were popular in the market for their good quality.
Real estate companies entered into secondary and tertiary cities, which have also been certified in the recent land market. On September 22, Greentown Group bought two top plots with a total price of 6.1 billion yuan in Suzhou under the personal supervision of Song Weiping, chairman of the Board. On September 29, Longfor Real Estate won a plot with 2.1 billion yuan in Chengdu. While the new lands of Vanke this year were mostly concentrated in secondary and tertiary cities. Vanke also said in the mid-year report that, "the competition for land in primary cities is more intense than that in other cities, and in order to ensure the level of project return, the company s new projects are mostly located in Shenyang, Anshan, Qingdao, Wuxi, Foshan, Xiamen, Fuzhou, Chongqing and other cities. Therefore, some experts have said that the current market structure is changing because the effectiveness of primary cities are being transferred towards secondary and tertiary cities with low risk and gradually developing market.

The chance of a major decrease in house prices is slim in the fourth quarter

As the development enterprises have gradually speeded up their commencement and construction progress since the first half of this year, it s estimated that the residence supply for the fourth quarter in some cities will rise than that in the third quarter and it s unlikely that prices continue to rapidly rise in the fourth quarter, but they will not be dramatically lowered. Dr. Long Shengping, head of China Real Estate Appraisal Center, made judgment as the above.
In the opinion of Dr. Long Shengping, after the turnover volume rises for a few consecutive months, some rigid demands will turn to a wait-and-see status again and the turnover will decrease, so that the house prices in the fourth quarter will gradually become stable; on the other hand, the market supply has been gradually increased and the balance of supply and demand is conducive to the stability of house prices, but with the promotion by strong market demands, it is unlikely that the prices will fall.
CRIC estimates that at the end of the year, the sales amount of these 20 companies will certainly exceed 400 billion yuan and their sales area will exceed 50 million square meters.
Gu Yunchang, vice president of China Real Estate Research Association, said that although the turnover in primary cities has recently declined, but that in secondary and tertiary cities is still very hot. With the gradual increase in the supply, the entire property market is still optimistic.