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Report on Real Estate Developers in China

According to the "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 sales of 16 real estate enterprises listed in the top 20 are all over RMB 10 billion, with the sold area of each exceeding 1,000,000 square meters.

Meanwhile, the threshold for entry into the ranking has also risen to sales of RMB nine billion and sold area of 750,000 square meters.

Well-established enterprises performed well this year. Sina.com was the first media source to release these rankings, some of which are below.

According to statistics, in terms of sales of commercial residences in 70 large and medium-sized cities, Evergrande Real-estate Development Co., Ltd ranks first with sold area of 2,300,000 square meters. In terms of sales value as well, Evergrande is first with RMB 12.33 billion. In addition, in Q3, although the transaction area of properties in 10 big domestic metropolises decreased by 15% month on month, the transaction area of 23 well-established real-estate enterprises increased month on month, from 28.46% to 110.03%. In terms of property prices, the average selling price of some real-estate enterprises has decreased slightly compared to the previous half year, which experts suggest may have influenced the 2009 rankings.

From the total sales of the first three quarters of 2009, traditional listed real-estate enterprises still lead in sales value. In rankings of sold area, the fast-growing enterprise Evergrande is ranked first.

In terms of land reserves, as of the end of Q3, 2009, Evergrande ranks first with 51 million square meters. Some experts say that second-tier cities will play a more and more important role in terms of structures of land reserves. The combination of the corporate capacity to sell quickly and greater reserves will benefit their development. Evergrande's huge land reserve resources will support its long, sustainable development.

In terms of sold area, the currently well-established developers can be divided into three echelons: those valued at more than RMB five million, between RMB five million and one billion, and between RMB one billion and three billion. Among them, Evergrande is the most well-known. In the first three quarters, its sold area exceeded 4,500,000 square meters, enabling it to enter the top echelon. In Q3, 40% of its projects were ranked in the top 100 in terms of sold area, making up 13.67% of the total top 100. This also makes Evergrande number one for sales and sold area. Its single quarter sold area and sales value were 2,300,000 square meters and RMB 12.33 billion respectively. Evergrande was ranked first with 103.09% growth for sold area and 106.75% growth for sales value in the third quarter over the first six months of 2009.

As for the Q4 property market, Shengping Long, Director of China Real Estate Appraisal, said that Q4 supply is expected to increase and property prices are unlikely to rise, although they will not fall greatly due to quickened development and construction by the developers in the first six months of 2009. However, the annual land transfer target in all large cities is still some distance away. Therefore, real-estate developers will continue to compete for high-profile plots in Q4. The land market in the second-tier and third-tier cities will be particularly preferable to developers.

Source: http://www.leju.com/

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