BEIJING, Oct. 12 /PRNewswire-Asia/ -- According to the "Sales Rankings of Chinese Real Estate Companies for Q3 2009" report released on October 9 by CRIC (China) Information Technology Co., Ltd., in cooperation with the China Real Estate Appraisal and Shanghai E-house R&D Institute, Evergrande Real Estate Group leaped to first place in terms of floor space sold for the first three quarters of 2009, land reserves at the end of the third quarter, area of projects under construction, as well as floor space sold and sales revenue for the third quarter. Sina Leju was the first media source to announce the release of this report.
The latest report from CRIC (China) shows that Chinese real estate companies did not remain stagnant despite their accelerated de-inventories during the first half of the year. Some developers continued sales promotions in a move to achieve further growth in 2009. Evergrande Real Estate Group recorded 2.303 million square meters of floor space sold for the third quarter, with sales revenue reaching RMB12.33 billion, topping both lists. According to CRIC (China), large amounts of land acquired at low prices, an operating model based on quick turnover and the upcoming public listing are expected to help Evergrande Real Estate Group climb to even greater heights.
Remarkably, the company saw a substantial increase in the area of housing starts, with statistics showing that Evergrande Real Estate Group is the leading real estate company across China in terms of the surface area of projects under construction (approximately 17 million square meters a year) and land reserves (51 million square meters).
Currently, real estate companies across China are expressing themselves as being very keen to accelerate housing starts, according to surveys conducted by branches of CRIC (China). Macro data shows the floor area under construction for the first eight months of 2009 increased 12 percent year-on-year. The increase is expected to alleviate the supply shortage in China's real estate market.
CRIC (China) believes the real estate market will become more stable in the fourth quarter. The rankings for the year have basically been finalized. Companies on these lists fall into three tiers.
Rankings in terms of sales revenue: RMB50 billion plus (CRIC (China) still considers Vanke as the only developer eligible); RMB30-50 billion (five companies including Poly Real Estate Group and Evergrande Real Estate Group); and RMB10-30 billion (16 companies including China Resources Land, Longfor Properties and Rongqiao Group).
Rankings in terms of floor space sold: over 5 million sqm (four companies -- Vanke, Century Golden Resources Group, Evergrande Real Estate Group and Greenland Group); 3-5 million sqm (three companies -- Poly Real Estate Group, China Overseas Land & Investment and Country Garden); and 1-3 million sqm (13 companies including Greentown Group, Gemdale Group and CITIC Real Estate).
Also highlighted in the report was that home transactions decreased throughout China after June 2009. However, the Chinese real estate market is expected to be stable as a whole in the fourth quarter, said CRIC (China). With respect to supply and demand, developers have sped up housing starts and construction since the first half of the year. Supplies in most Chinese cities are expected to increase sequentially in the fourth quarter, which will alleviate supply shortages. However, high home prices and uncertainties in policies will curb rigid demand and demand from potential buyers who want to upgrade their living standard. Home transactions in the fourth quarter are expected to decrease from the second quarter.
With that, housing prices are unlikely to continue their rapid rise in the fourth quarter due to increased supply, but are not expected to drop dramatically either. On the one hand, the wait-and-see attitude among potential buyers will cause housing prices to gradually stabilize in the fourth quarter; on the other, an increasingly balanced supply and demand is also conducive to the stability of prices.
As for the land market, in the fourth quarter, local governments are expected to increase the amount of land for sale, and developers are expected to bid frantically for land as well. Large private enterprises will actively join the roster of land hunters seeking out the most expensive parcels, setting up a three-way struggle with enterprises under the aegis of the central government and capitalized enterprises.
For more information, please contact:
Kevin
Fax: +86-10-5895-1005
Email: Kevinmts@sina.com
