Market turns fluid amid big churn
The financial performance of Chinese property developers has been undergoing massive changes since last year.
Small firms either closed or merged with bigger players as the industry consolidated or rationalized due to constant policy changes.
Also, land supply decreased. Solid growth became difficult for developers because the market shifted its focus from building and selling houses to developing and leasing existing projects, experts said.
Chinese real estate giants such as Country Garden, Evergrande Group and China Vanke all saw their sales revenue exceed 500 billion yuan ($78.87 billion) for the first time in 2017.
Country Garden reported a 78-percent year-on-year growth in contracted sales by reaching 550.8 billion yuan, followed by China Vanke’s 529.88 billion yuan and Evergrande’s 500.96 billion yuan.
In addition to their glittering performance, these market leaders also have substantial amount of land reserves for securing their future development.
Country Garden holds 280 million square meters of land as well as about 140 million sq m of land in the contract pipeline.
Vanke’s carry-over projects’ sales revenue totaled 414.32 billion yuan as at the end of 2017, a year-on-year growth of almost 49 percent.
Evergrande’s total floor area in reserve has reached 312 million square meters by the end of last year, and its land reserve value has already nearly doubled to 1.04 trillion yuan from the