According to the "Sales Rankings of Chinese Real Estate Companies for Q3 2009" report released on October 9th by CRIC (China) Information Technology Co., Ltd., in cooperation with China Real Estate Appraisal and Shanghai E-house R Institute, the competition landscape among Chinese real estate companies began to change in the third quarter.
Statistics show that Vanke topped the list in terms of sales revenue as of the end of the third quarter. Industry analysts predict that if Vanke can increase the number of units available for sale in the fourth quarter, the developer will achieve sales revenue amounting to RMB60 bil for 2009, and by doing so, set a nationwide record among all the players in the sector.
However, major Chinese developers like Poly Real Estate Group and China Overseas Land Investment, as well as developers specializing in fast turnaround of projects represented by Evergrande Real Estate Group and Greenland Group are gaining momentum this year and are closing in on and even outperforming Vanke in some areas.
Companies like Evergrande Real Estate Group have moved up in the "Sales Rankings of Chinese Real Estate Companies for Q3 2009," evidence of changes to the pattern of competition in the real estate sector. As there are more and more players with annual sales of RMB 10 billion or above, the market will see further concentration. The report also shows that a large reserves of low-cost land, efficient operating models and imminent plans to go public are making it possible for Evergrande Real Estate Group and similar companies to achieve rapid development.
An overview of the three rankings shows that Evergrande Real Estate Group recorded outstanding performance: floor space sold for the third quarter reached 2.303 million square meters, with sales revenue of RMB 12.33 billion, topping both lists. The company was ranked first on the list of the top 20 Chinese real estate companies for the first three quarters of 2009 in terms of floor space sold, with 4.537 million square meters of floor space sold. In addition, it was the leading real estate company across China in terms of land reserves at the end of the third quarter (51 million square meters) and surface area of projects under construction.
Evergrande Real Estate Group differentiated itself from a host of powerful real estate companies to top five of the six sub-lists. In addition, the company experienced the fastest growth in both floor space sold and sales revenue for the third quarter when compared with the first half, with growth rates of 103.09 and 106.75 percent, respectively.
During the first half of the year, Evergrande Real Estate Group not only went against the trend during the financial crisis by maintaining positive growth, but also took the lead in recording robust growth during the economic recovery, as evidenced by its strong performance in floor space sold. Large amounts of land reserves, an operating model based on quick turnover and the upcoming public listing are expected to help Evergrande Real Estate Group climb to even greater heights.
Source: PR Newswire / Sina
