[Southern Metropolis Daily] Will the competition in cost-effectiveness follow after the group of “50 billion yuan” has taken shape?
Date:2010.12.09 Publisher:Southern Metropolis Daily
After Vanke announced that its year-round sales amount had exceeded 100 billion yuan, Evergrande announced in the news conference on performance held in Hong Kong yesterday that Evergrande’s sales amount in November of 6.56 billion yuan had refreshed again the highest transaction record in a single month this year. The sales amount of the past 11 months had reached 47.72 billion yuan, laying a foundation for the year-round sales amount of 50 billion yuan. In addition, the Company has stably ranked among the first legion in the real estate industry of China.
Wang Haibin, Chief Analyst of WorldUnion Properties, said to the reporters from Southern Metropolis Daily that the concentration ratio of the real estate industry at present was relatively low, which was about 5%. The phenomenon of pursuing maximization of profit from a single project was very common. But large-scale real estate enterprises would certainly compete with each other in sales in the near future for seizing the market. “These real estate enterprises will be the main promoters for stabilizing the house prices and improving the quality of projects for increasing their market shares.”
When having interviews with the reporters from Southern Metropolis Daily, many insiders said 50 billion yuan would become an important watershed dividing the real estate enterprises of China this year. The sales amount of the first camp would reach more than 50 billion yuan, which includes Vanke, Poly, China Overseas, and Evergrande as it was estimated. The sales amount of the real estate enterprises in the second camp would be less than 30 billion yuan as it was estimated. In addition, the difference between the first camp and the second camp would gradually increase. The trend is obvious that the powerful ones would be more powerful. In sharp contrast with the first and second camps, some medium and small enterprises face the risk of retreating from the real estate industry.
The emergence of the 50-billion-yuan legion will impact the market with a new round of sales competition. A relevant personage of Evergrande also revealed that Evergrande’s strategy next year was to guarantee the copy of boutique properties in different areas through rapid land obtainment, rapid development, and rapid sales, by constituting union with various types of enterprises in the industry chain, and through standardized operation. “At present, according to the nationwide strategic layout, Evergrande has developed projects in 27 cities in China, 96% of which are second- and third-tier cities. Such scale has not only brought land of low cost and layout of wide coverage, but also provided enough space for Evergrande to build varied product lines and carry out subsequent standardized operation.”