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During New Year s Day Holiday Real Estate Market Is Rallying, Evergrande s Properties Sell Well at Rock-bottom Prices

During New Year s Day Holiday Real Estate Market Is Rallying, Evergrande s Properties Sell Well at Rock-bottom Prices

Write: Amorina [2011-05-20]

The three brand-new properties sold several billion RMB within the first three selling-days, on January 1st alone, sales reached 832 million RMB, sales of other 18 properties were also remarkably impressive.
Experts say Evergrande s price has just reached the rock bottom, and now is the right time to buy

News from this Paper The introduction of a series of favorable real estate policies gradually restores market confidence. Consumers are flowing back to the real estate market, which has become a trend. During the New Year s Day holiday, real estate markets across the country are rallying. Reputable real estate developers and properties at rock-bottom prices are most favored by consumers. Evergrande, the first to enter the market with rock-bottom prices, once again became the biggest winner. It is reported that three brand-new Evergrande projects sold several billion RMB within the first three selling-days, by noon on the third day, to be exact. On January 1st, the New Year s Day, these three projects sold 832 million RMB in total.

Latest data show that on the New Year s Day, Evergrande Splendor in Qingyuan, Guangdong Province sold 250 million RMB, Evergrande Oasis in Taiyuan sold 348 million RMB and Evergrande Palace in Changsha sold 234 million RMB. While in a dozen other core cities, other 18 projects of different series were also launched onto the market on the New Year s Day, tens of thousands of quality suites were launched at rock-bottom prices. Evergrande says that it is trying to adapt to the improving climate in the real estate market by accelerating marketing pace. Evergrande s high performance/price ratio product , the first to be launched at rock-bottom prices, was the first to secure a foothold in the improving real estate market because it was the first to be recognized by consumers.

The newly-launched three properties in Qingyuan (Guangdong), Taiyuan and Changsha sold a total of 832 million RMB on the New Year s Day, and within less than the three-day New Year s holiday, they sold over a billion RMB. Sales data for the18 new properties in other regions are not yet available due to complexity of the data, and we are doing our best to collect and process data. But there is one thing for sure, the result is going to be very pleasing. We can also feel that not only are consumers becoming less and less inclined to sit on the fence, but also they increasingly recognize the quality and price of the properties which were sold at rock-bottom prices since September. Confident that houses sold over the past few months were at rock-bottom prices, consumers are bullish that property prices will buck the overall market trend and display a moderate upward trend, as a result, sales are extremely pleasing in all parts of China, says relevant officer of Evergrande Real Estate Group.

Consumers buying power is very strong, price is the key to the game between the buyer and the seller , Ke Peng, Evergrande s Marketing Supervisor said to our journalist earlier, as early as in September, Evergrande took the bold and preemptive step of surrendering part of the profits to consumers ahead of competitors, and launched properties at rock-bottom prices. It is because those were truly rock-bottom prices with no room for further reduction that consumers actually stopped sitting on the fence and started to buy because they were bullish about the upward price trend. This time, Evergrande once again launched quality products at rock-bottom prices to seize the opportunity, this move wins recognition from consumers and lets responsive consumers enjoy the benefits of a rallying market. This has been substantiated by the transaction volume during the New Year s Day holiday.

The macro climate of the real estate market makes consumers more rational. Indiscriminate or impulsive shopping behaviors are almost extinct. As a reputable quality-oriented enterprise, Evergrande maintained quality product strategy during recession of the real estate market and never satisfied quality due to cost-price selling. It is no surprise that when cost-price selling strategy and quality product strategy were combined, the performance/price ratio was effectively improved, which served as the key stimulus to the rallying real estate market, says a real estate expert.

Analysts from TX Investment Consulting Co., Ltd. say despite the unbalanced development of real estate markets in different regions, judging from the current situation, China s real estate market has overall entered rock-bottom stage A few deep-pocketed real estate developers have adopted the rock-bottom pricing strategy which will greatly stimulate consumers rigid demand and satisfy buyers needs.

Experts say that real estate developers should follow Evergrande s example and surrender part of profits to consumers to encourage buying. This will help promote a more active real estate market and consequently help lift the national economy out of the mire of the financial tsunami. Overall the real estate market is still recovering from recession, but with more and more consumers stopping to sit on the fence, now rigid demand is manifesting itself, products with high performance/price ratio sell like hot cakes. Reputable real estate developers such as Evergrande have taken preemptive step of launching products at rock-bottom prices. Furthermore they have all along been committed to improving products quality and products own advantages. Against the backdrop of an overall rallying real estate market, they are expected to sell their products like hot cakes and become the top performers in a rallying real estate market.