New | China developers expected to ramp efforts to meet full year sales targets
The major developers are likely to cut prices in an effort to meet annual targets, analysts say
China's developers will increase project launches in the next two months, cutting prices if necessary, to hit full-year sales targets, industry analysts said.
With the year's best season ending, about half of the 30 major developers on a list by consultancy E&H Corp still had to plug a 20 per cent gap in their annual sales targets.
Standouts included Evergrande Real Estate, the country's No 3 developer in sales, which posted a 130 per cent surge in contracted sales in October from September to 25.8 billion yuan, pulling the total in the first 10 months to 154.5 billion yuan, surpassing its full-year target of 150 billion yuan.
The industry's No 1 developer, China Vanke, had contracted sales of 204.1 billion yuan in the January-October period, and told investors that full-year sales could hit 250 billion yuan.
"Developers are confident of fulfilling their full-year sales targets as the new launches in the last two months are sufficient," Jefferies property analyst Venant Chiang said in a note.
Evergrande and Shenzhen Investment are expected to beat their targets by 20 to 30 per cent, and China Resources Land and China Jinmao Holdings may exceed theirs by 5 to 10 per cent. However, Guangzhou R&F Properties and Shimao Property may miss their goals, he added.
R&F reported contracted sales of 39.3 billion yuan in the first 10 months. Its annual target was revised in August to 55 billion yuan from 60 billion yuan. Shimao has yet to announce its sales performance in October.
