With Increases in Both Quantity and Price, the Sales Amount of the Past 11 Months for Evergrande Reaches Almost RMB50 Billion

Dec 08, 2010, 05:04 ET from Sina Leju

BEIJING, Dec. 8, 2010 /PRNewswire-Asia/ -- The sales momentum of Evergrande Real Estate in November, which surpassed the original 2010 sales target of RMB40 billion with two months to spare, and which is now very close to the new annual target of RMB50 billion. According to the sales performance of November released in Hong Kong by Evergrande Real Estate on Dec. 8, Evergrande has continued to keep the growth in both quantity and price. The income in November was RMB6.56 billion, with an average selling price of 6,745 yuan per square meter, and the contracted sales amount of the previous 11 months of this year reaching RMB47.72 billion.

Although the year-end period is the traditional low season for the real estate market, the performance of Evergrande is still remarkable. According to the sales presentation, Evergrande realized the contracted sales amount of RMB6.56 billion in November of 2010, the highest transaction record in a single month since the beginning of 2010; the contracted sales area reached 973,000 square meters, with the average contracted selling price of RMB6,745 per square meter, and both the sales amount and sales area of November increased by 145.9% compared with those of the same period of 2009 and increased respectively by 18% and 9% compared with those of October this year. The average selling price increased by 8.25% compared with that of October.

It is worth noting that Evergrande is approximating the level of RMB50 billion step by step. According to the sales presentation, Evergrande accumulatively realized the contracted sales amount of RMB47.72 billion from Jan. to Nov. in 2010. This figure is 119.3% of the RMB40 billion annual target of contracted sales of Evergrande, and 157.5% of RMB30.3 billion contracted sales target of Evergrande in 2009. It increased by 81.7% compared with RMB26.272 billion from the same period of 2009. In addition, from Jan. to Nov., Evergrande has accumulatively realized a sales area of 7,563,000 square meters, which increased by 51.8% compared with 4.983 million square meters sold during the same period in 2009.

The sustainable growing sales performance of Evergrande indicates that although facing the unceasing market regulations and controls since this year and the low season at the end of the year, with the strong team executive power and the boutique properties of super high cost-effectiveness, Evergrande achieved the sales amounts of RMB3.67 billion and RMB3.74 billion respectively in March and April, the other traditional low season for the real estate market, and has kept the increase on a monthly basis for the whole year, thus creating the miracle of "no low season in the whole year" within the real estate market.

At a time when Evergrande's sales amount for the whole year almost reaches RMB50 billion, insiders hold the opinion that Evergrande's growth for this year is exceeding the expectation due to the look-ahead strategic layout in second- and third-tier cities. In the environment of unceasing regulations and controls this year, the strategic foresight and anti-risk ability of Evergrande are more and more obvious. According to the analysis, compared with the high pressure from regulations and controls faced by first-tier cities this year, the urbanization development of second- and third-tier cities, especially the third-tier cities, is becoming the huge space for the growth of the real estate market in China, and has thus caused a great deal of rigid demand.

At present, Evergrande is the leading real estate enterprise which has not only developed projects in the largest number of provincial capitals in the country but also made great achievement in the second-tier cities. In addition, since March this year, Evergrande has developed large scale projects in the third-tier cities. In a short period of six months, the persistent mode of fast development and fast sales has seen Evergrande gradually see achievements in the third-tier cities. According to the sales presentation, Evergrande launched four new projects to the market in November, among which one project is in a third-tier city. Till now, the number of Evergrande's projects on sale has reached 56, among which the number of projects launched to the third-tier market in cities that are not provincial capitals reached four. The contribution rate of third-tier cities is gradually increasing.

SOURCE Sina Leju