A total of 30 A-share and H-share listed property developers released the data on sales in October as of Tuesday. Sales revenues of the 30 companies amounted to 159.4 billion yuan in October, up 20 percent from September or 29 percent year on year; and the overall sales area was 15.01 million square meters, up 25 percent from September or 26 percent year on year, according to a Shanghai Securities News report on Wednesday.
In the first 10 months of this year, four real estate developers' sales revenues had exceeded 10 million yuan. In the short term, as the sales going up and four fifth property developers' business revenue growing further, the developers may not be willing to accept smaller margins with greater volume.
The four developers with sales revenue exceeding 10 million yuan are China Vanke (000002.SZ), Evergranda Real Estate Group Ltd. (03333.HK), Poly Real Estate Group (600048.SH) and Country Garden Holdings (02007.HK). Sales revenue of China Vanke amounted to 204.1 billion yuan and ranked the top, up 19.3 percent year on year; and that of Evergranda Real Estate Group Ltd., Poly Real Estate Group, and Country Garden Holdings were 154.5 billion yuan, 121.2 billion yuan, and 100.5 billion yuan, respectively, showing an increasing momentum.
Compared to the same period of 2014, 24 of the 30 listed property developers reported higher sales revenue, and 20 developers' sales revenue rose over 10 percent on a yearly basis. Lu Qilin, director of Research Department of Homelink Shanghai, said most property developers increased supply, particularly the proportion to satisfy people's demand for second houses, and the moves helped boost developers' business performance.
Most developers needn't worry about fulfilling sales targets for this year and they are unlikely to accept smaller margin with greater volume in the final quarter of this year. But some small- and medium-sized property developers may launch marketing activities to fulfill the sales target.
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