Strong results from big mainland developers
The leading property developers on the mainland delivered strong performances last year, despite austerity measures aimed at cooling down home prices, according to an industry study just released.
The study, conducted by the property information and consulting firms China Real Estate Information and China Real Estate Appraisal, ranked the top 50 developers on the mainland in terms of their revenue from new-home sales and the volume of real estate they sold.
Six developers had revenues of more than 50 billion yuan (HK$61 billion), the same number as in 2010. The number of companies with revenues of between 30 billion and 50 billion yuan rose from four in 2010 to six last year.
'The property market was undergoing a consolidation period, with some sell-offs, mergers and acquisitions. This will widen the gap between developers of different scales and at the same time will intensify competition among companies of similar sizes,' the report said.
China Vanke remains the country's leading home seller, with sales revenues last year of 121 billion yuan. Evergrande Real Estate was ranked second, with annual sales revenue rising to 80.8 billion yuan from about 50 billion in 2010.
In terms of sales area, Evergrande edged ahead of China Vanke, selling 12.2 million square metres of real estate last year compared to Vanke's 10.6 million square metres.
Greenland ranked third in sales revenue and area sold, having sold 8.08 million square metres of property for 77.6 billion yuan.
All three were among the developers that cut the prices of their projects last year to drum up sales.
Lai Kwok-keung, Centaline Property Agency's chief executive for southern China, said he expects the competition among mainland developers this year to be fiercer than in 2011.