Prop­erty giants smash sales tar­gets as prices soar

China Daily (USA) - - BUSINESS - By JING SHUIYU and HU YUANYUAN Con­tact the writ­ers at huyuanyuan@chi­ and jing­shuiyu@chi­

Sales of China’s three largest prop­erty de­vel­op­ers have ex­ceeded 200 bil­lion yuan ($29.98 bil­lion) so far this year, fu­eled by a huge hous­ing boom.

In ad­di­tion to Vanke Co Ltd, Ever­grande Group and Coun­try Gar­den Hold­ings Co Ltd, two other prop­erty giants — Green­land Group and Poly Real Es­tate Group Co Ltd — will also see a sim­i­lar break­through in sales this year, and more prop­erty de­vel­op­ers will meet the sales tar­get of 100 bil­lion yuan, ex­pert say.

The trans­ac­tion vol­ume of Shang­hai-based Green­land Group reached 144.73 bil­lion yuan in the first eight months, and that of Guangzhou-based Poly Real Es­tate Group Co Ltd was 137.36 bil­lion yuan.

“There will be more prop­erty com­pa­nies whose sales are in ex­cess of 100 bil­lion yuan, as quite a fe­wof them had met 60 per­cent their an­nual sales tar­get in the first six months,” said Ouyang Jie, vice-pres­i­dent of Shang­hai-based prop­erty agency Fu­ture Land Devel­op­ment Hold­ings Ltd.

In­dus­try data showed that both the trans­ac­tion vol­ume and sal­able area of com­mer­cial units of sev­eral com­pa­nies had more than dou­bled in the first eight months.

Over­all, the rev­enue of A-share listed prop­erty com­pa­nies in­creased 44.6 per­cent to 136 bil­lion yuan in the first half of 2016, ac­cord­ing to a re­port re­leased by the Chi­nese Academy of Sci­ences in late Septem­ber, which mon­i­tored the per­for­mance of 2,271 non­fi­nan­cial A-share listed com­pa­nies.

Thanks to their su­pe­rior per­for­mance, some prop­erty firms have read­justed their sales tar­gets.

Ever­grande Group, the Guang­dong-based real es­tate com­pany that went public in Hong Kong, raised its an­nual sales tar­get to 300 bil­lion yuan from 200 bil­lion yuan in the mid­dle of the year, ac­cord­ing to a com­pany fill­ing.

These prop­erty giants are cash in gin on the con­tin­ued rise in house prices across China.

The price of new apart­ments rose in 64 of 70 cities that were mon­i­tored in Au­gust, com­pared with 51 in July, ac­cord­ing to the Na­tional Bureau of Sta­tis­tics.

The price in 17 cities in­creased more than 10 per­cent over the pre­vi­ous month. In Xi­a­men and He­fei, prices even rose by 40 per­cent month-on-month.

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