Economic Ovserver News 2010-6-9 WuQiong

Evergrande Real Estate published its sales result for May on June 7: Evergrande harvest a total sales income of 4.05 bilion yuan, 8.3% up over the same period of last year. According to Mr. Xia Haijun, President of Evergrande, the growth was largely a result of the 15%-off promotional policy implmemented in May.

According to the report from Evergrande, the total area sold in May was 640,000m², a growth of 240.3% over last year and 10.7% over last month. The average price of Evergrande products in May was 6,326 yuan per square meter, 26% up compared with the same period of last year but 2.2% down compare with last month. According to Evergrande, in April, the fall in price was not significant, thanks to the increase in the sales volume of its high-end products, including Evergarnda Oasis Villas in Nanchang that was newly launched onto the market and Evergrande Oasis in Guangzhou sold at a 15% discount price. If the impact of the high-end products was not considered, the average price in May was 6% down.

According to President Xia, the 15%-off promotional policy had achieved the desired results in the background of macro control. He presented a series of figure to illustrate his point: Between April 20 and May 5, after the latest control measures were implemented on April 18, the average daily sales volume was 64 million yuan, which increased to 135 million yuan by the end of May, after the 15%-off promotional policy was announced on May 6.

According to President Xia, the average price was adjusted from 6,805 yuan per square meter before the discount to 6,273 yuan per square meter, 7.8% down, but the actual sales volume increased by 110%.