MEDIA RELEASE PR36646
Follow-up Supply to Determine Growth Potential for Chinese Real Estate Companies
BEIJING, Oct. 19 /PRNewswire-Asia-AsiaNet/ --
The "Sales Rankings of Chinese Real Estate Companies for Q3 2009" report released on October 9 by
CRIC (China) Information Technology Co., Ltd. in cooperation with the China Real Estate Appraisal and
Shanghai E-house R&D Institute shows that both the "No.1" Chinese real estate company in terms of Q3 sales
and the "No.1" Chinese real estate company in terms of other results for the quarter have changed. Privately
owned Chinese developers, best represented by Evergrande Real Estate Group, are posing challenges for
their traditionally advantageous public rivals by rapidly expanding their market share while the "traditional
No.1" Chinese real estate company is faced with great challenges. Sina Leju was the first media source to
announce the release of this report.
What the new rankings reveal is not merely the quantitative growth, said Dr. Shengping Long, director of
China Real Estate Appraisal. As follow-up supply determines potential for a company's growth, huge reserves
of land that meets market requirements are expected to give a strong push to real estate developers' growth or
even reshape the Chinese property market.
The CRIC (China) report indicates that with low-priced land reserves of more than 51 million sqm,
Evergrande deservedly became China's largest "landlord". Evergrande was followed by Country Garden
Holdings Company Limited, the previous largest Chinese "landlord". Country Garden's land reserves were
maintained at 43.6 million sqm. Agile Property ranked third with land reserves of 29.5 million sqm.
The CRIC (China) Research Center believes the capacity of selling fast and high levels of land reserves at
Evergrande, Country Garden and Agile Property will be conducive to their development, allowing these major
real estate companies to enjoy huge potential for long-term growth.
Analysts note that land reserves are a major measurement for real estate developers. As one focusing on
provincial capitals with the highest potential for growth, Evergrande entered major Chinese provincial capitals
each with a population of at five million plus and their suburbs early, acquiring a huge amount of cost-effective,
quality land reserves. Currently, Evergrande is conducting property development in 17 Chinese provincial
capitals and municipalities across China, including Tianjin, Chongqing, Guangzhou, Shenyang, Chengdu and
Wuhan. In these cities, Evergrande operates 44 projects, or more than 80 percent of its total number of
development projects.
Last year, when its IPO plan was suspended, Evergrande was criticized for its excessive land reserves.
However, value of the huge reserves has now been recognized by the market and these low-priced reserves
are making Evergrande the envy of its rivals that once again have to scramble for high-priced land at any cost.
In addition, as the Chinese property market has widely recovered since Q2 2009, real estate developers
across China are aggressively accelerating development of new projects. Among them, Evergrande's floor
space under construction totals 17 million sqm, the highest of its kind in China, while Vanke has raised its
development target for the full-year 2009 from 4.03 million sqm to 5.85 million sqm, representing a rise of up to
45 percent. In the short term, newly started projects and floor space under construction perfectly reflect those
real estate companies' short-term growth potential.
Continued increases in newly started projects and floor area under construction are bound to drive up real
estate companies' results in the short run, and rankings of Chinese real estate companies for the full year of
2009 will be even more worth looking forward to, Long added.
For more information, please contact:
Kevin
Fax: +86-10-5895-1005
Email: Kevinmts@sina.com
SOURCE: Sina Leju
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