Evergrande Builds Up-market Houses Affordable for Ordinary People

BEIJING, Aug. 9 /PRNewswire-Asia/ -- On August 9, Evergrande Real Estate Group released the sales presentations for July in Hong Kong. According to the presentations, Evergrande achieved total contracted sales volume of 26.06 billion yuan from January to July of 2010, fulfilling more than 65% of its annual target, and continued to take the lead in the industry. According to the insiders, the achievements made by Evergrande in the sluggish market are not only due to its focus on the layout in the second-tier and third-tier cities, but also due to its strategy in building up the up-market residential houses. Such achievements also indicate that only the residential houses with actual high cost performance are the second-to-none choices for ordinary people. An original report from Sina Leju assesses the situation as follows:

Good start in second half of the year

According to the presentations, Evergrande achieved contracted sales volume of 5.08 billion yuan in July 2010, increasing by 172.4% compared with that in the same period of 2009, which was 1.87 billion yuan. In July which is typically the off season of the real estate market, the contracted single-month sales volume exceeded 5 billion yuan for the first time, setting another record since 2010 and creating a good start for the sales in the second half of the year.

The presentations also indicate that Evergrande, with its contracted sales area of 861,000 square meters, continues to take the lead in terms of sales area among real estate enterprises in July, increasing by 124.3% compared with that in the same period of 2009, which was 384,000 square meters. This is also the biggest single-month sales area since the beginning of this year. The average contracted sales price was 5,900 yuan/square meter, increasing by 21.5% compared with 4,857 yuan/square meter in the same period of 2009.

It's worth noting that from January to July 2010, Evergrande has achieved a total contracted sales volume of 26.06 billion yuan, fulfilling 72.3% of the full-year sales target planned at the beginning of the year, which is 36 billion yuan. It is learned that in July, Evergrande already adjusted its full-year sales target to 40 billion yuan. Even based on the assumption that the full-year sales target is 40 billion yuan, Evergrande has fulfilled 65.2% of the adjusted target, becoming a leading real estate enterprise with the highest fulfillment rate in terms of sales in China.

According to the insiders, the achievements of Evergrande are expected to be better, considering the incoming traditional peak season of the real estate market and considering the large-scale and rapid development of the up-market property and the strong executive force of the team at Evergrande.

Achievements in both new and old markets

According to the presentations, in July 2010, Jinan City alone contributed more than 20% of the sales volume for Evergrande. It is learned that Evergrande entered Shandong in February this year and has developed Jinan Evergrande Oasis and Jinan Evergrande Metropolis. Surprisingly for the industry, it only took 5 months for these two projects to be launched into the market in July since the acquisition of land in February. In addition, other early projects of Evergrande in other cities are still experiencing hot sales.

According to insiders, during the policy-regulation period, Evergrande entered a completely new market in Jinan, constructed, completed and launched two projects consecutively and achieved a good success. This indicates that under whatever policy-regulation circumstance and market conditions, in any region and at any time, the Evergrande mode of rapid development and build-up of up-market products is successful.

According to Xia Haijun, the chief executive officer of Evergrande Group, Evergrande adheres to the mode of rapid development and never hoards land. Most of its reserved lands are under development. Through rapid acquisition of land and rapid development, Evergrande sells the mid-priced up-market houses quickly, transfers the benefit from the value-added part of the land to the ordinary people in China, and Evergrande earns reasonable profits. This is also part of Evergrande's principle of fair livelihood property.

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SOURCE Sina Leju