Among the domestic real estate stocks which have published the sales performance of September, a peak season, Evergrande (3333) with layout in the second- and third- tier cities achieved a contracted sales amount of 5.1 billion (RMB, the same below), setting a new record of monthly turnover in the year. As of the end of September, it has secured a sales amount of 36.5 billion yuan, fulfilling nearly 90% of the annual target of 40 billion yuan this year. According to Xia Haijun, Vice Chairman and Chief Executive Officer, the sales data will also be ideal in October, and it is expected that the year-end sales amount can exceed the target of 40 billion yuan.

In September, for Evergrande’s three newly opened projects in Shijiazhuang, Guiyang and Wuhan, the total contracted sales area of the month increased by 13.4% to 766,000 square meters over that of August, and the revenue reached 5.1 billion yuan, increased by 10.5% on a month-on-month basis, reaching a new high.

Rising of Price and Quantity in April through September

According to Xia Haijun, there is no suspense for the Company to complete the annual target, and it will adjust the speed of project launch within the year to ensure the projects are launched at reasonable prices. He said due to the strategy of pricing varying with the changesof market demand, the Company offered a 15% discount since the introduction of regulation and control policy in April, so that the sales of April through September still rose in both quantity and price. As for the future, the pricing will not be implemented uniformly nationwide, but will depend on the market conditions of local places, and he expected to maintain a reasonable average price of more than six thousand yuan per square meter.

To aim at the third-tier cities next year

Looking into the future, Xia Haijun said the Company will complete the layout in the major second- and third-tier cities throughout the country this year, and will move further to the third-tier developed cities next year. Though which cities to be selected has not been disclosed, the standards for selection include local population, economic growth level and the distance from the second-tier cities.

In addition, Goldman Sachs also thinks highly of the real estate developers with development projects in the central and western regions, which are expected to benefit from the sales growth, and the preferred domestic real estate stock listed in Hong Kong is still Evergrande.