A total of 58 listed Chinese property developers have released the financial reports for the third quarter of this year.
Statistics show that the operating revenues of the property developers in the third quarter totaled 377.83 billion yuan, but their net profits were merely 28.21 billion yuan with average net profit margin at 7.5 percent.
Figures released by Centaline Property show that among the 58 property developers, profit margins of 21 companies were above 10 percent and those of 37 companies were below 10 percent, showing the real estate industry has entered into the scope of mid- and low-margin industry.
In addition, 31 companies reported net profit decline and 19 companies got more profit. Zhang Dawei, chief researcher with Centaline Property, said the profitability of real estate companies dropped further in the third quarter.
As more small- and medium-sized property developers are to release the financial reports for the third quarter, the net profit margin of the companies is estimated to be around eight percent, still at historical low.
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