April 1, China Real Estate Information Corporation and China Real Estate Appraisal jointly issued the TOP 20 List of China Real Estate Enterprises in 2010 First-quarter Sales.

According to the list, Evergrande ranks the first and second place respectively in the most-concerned sales area and sales amount rankings. Evergrande wins the title with the sales area of 1.295 million square meters in the first quarter, and runs second with the sales amount of 8.53 billion yuan.

Evergrande achieves sales growth of 175%

Since the rising early last year, Evergrande has maintained a rapid growth trend. Since it was listed in November 2009, this rapid growth trend has never slowed down. Data shows that in 2009, Evergrande achieves the annual sales amount of 30.3 billion yuan, wherein, the sales amount in the first quarter is 3.109 billion yuan. While Evergrande’s sales amount in the first quarter of this year has reached 8.53 billion yuan, with an increase of 175% over last year, indicating optimistic performance of Evergrande in the total sales amount of 2010.

Evergrande maintains a ferocious growth though it has been listed for half a year. This report shows that Evergrande has been once again recognized by the market for its core competitiveness in large-scale expansion, product line extension, and operation standardization, etc.

Distribution in the second-tier cities to enhance the anti-risk capacity

According to the list, the second and third-tier cities have become the main targets for each enterprise to achieve sales performance, and sales in the second and third-tier cities occupy an ever-larger proportion in the sales of real estate enterprises ranking at the forefront. At present, the emphasis of the regulation of the property market is still placed on the first-tire large cities, while there is still huge rigid demand in the majority of the second and third-tier cities. In terms of regional distribution for the first-quarter sales, the second and third-tier cities have become the main sources of sales income for real estate enterprises. Now the situation that companies wining the market of second-tier cities will win the world has been formed.

Evergrande is one of the first real estate enterprises in China to expand in second and third-tier cities. After years of development, Evergrande has established more than 50 series of projects such as Evergrande Palace, Evergrande Oasis, and Evergrande Splendor in China’s more than 20 major cities including Guangzhou, Shanghai, Tianjin, Chongqing, Shenyang, Chengdu, Wuhan, Nanjing, Xi'an, Changsha, Taiyuan, and Kunming. Most of such projects are situated at the second and third-tier cities with unlimited potential, as a real estate developer which keeps its mind on the second and third-tier cities with the greatest potential, Evergrande’s sales amount from second-tier cities in the first quarter of 2010 accounts for more than 90%, indicating reasonable distribution and anti-risk capacity of its products.

Scale advantage

While there are predictions of the prospects of the current property market, according to the performance of the property enterprises, no obvious indication has been found; on the contrary, the real estate giants such as Evergrande are creating new highs and growing at high speed. The list also shows that those real estate enterprises in large scale and with powerful brand influence have achieved the absolute dominance in the competition. The competition in scale, brand, and other core competitiveness among the property enterprises has started this year. The competition for China's first tier have been increasingly concentrated in a small number of real estate enterprises, while the small and medium real estate enterprises are facing increasing difficulties in the competition. As a result, the state of “the strong to be always strong” has emerged. With its super strength and high-quality brand image, Evergrande has established its leading position in the real estate industry, and has presented a trend of high-speed stability and sustainable development.

List of Real Estate Enterprises in 2010 First-quarter Sales Area  

List of Real Estate Enterprises in 2010 First-quarter Sales Amount