The Competition Between Real Estate Enterprises in China is Intensifying, With Real Estate for People's Livelihood Leading in the Adverse Market

BEIJING, Jan. 5, 2011 /PRNewswire-Asia/ -- On January 1, 2011, the Residence Sales Ranking List of Real Estate Enterprises in China in 2010 was released by China Real Estate Information Corporation and China Real Estate Assessment Center jointly. According to the ranking list, along with the re-integration of market resources, the concentration ratio of the entire real estate industry has been further increased, with the performance of large-scale enterprises hitting new highs. An original report from Sina Leju follows:

The magnitude of increase in the sales amount and sales area of the enterprises compared with those of 2009 in the Ranking List showed not only the widening gap between different echelons but also the intensifying competition pressure within the same echelon. In 2010, six ultra large-scale real estate enterprises with the sales amount of more than 50 billion yuan including Evergrande ranked in the first echelon, and 50 billion yuan also became the new starting line for the leading real estate enterprises in China, while 100 billion yuan will become the next target for these real estate enterprises.

When most of China's small-and-medium developers fell during the macro-controls this year, the leading real estate enterprises of scale expanded in the adverse market, showing powerful development momentum, and Evergrande was outstanding among them. In 2010, Evergrande achieved the annual sales amount of 52.7 billion yuan, exceeding 50 billion yuan, ranking successfully among the "50 Billion Legion", and achieved the sales area of 8.31 million square meters, with an increase of 43% compared with that in 2009, which was 5.81 million square meters, ranking the second place in the sales area.

Evergrande has adhered to the strategy of rapid development and rapid sales. The rapid development of scale and the city construction of large areas create beautiful environments and complete supporting facilities for the second- and third-tier cities This is not only beneficial to improve the overall image of the cities and promote the urbanization progress, but also beneficial to reduce the development cost of projects. Meanwhile, rapid development and rapid sales have provided Evergrande with reliable fund guarantee, so as to avoid possible risk due to rapid expansion and market control.

In addition, the real estate industry of high effectiveness for the people's livelihood obtained the lion's market share for Evergrande. Hui Ka Yan, Chairman of the Board of Directors of Evergrande, often mentioned that the profit of Evergrande mainly came from the look-ahead strategy of land reserve, the effective cost control ability and the interest concessions of suppliers and contractors, which made it impossible for Evergrande to create the high-quality real estate affordable by the common people.

Evergrande took the lead in putting forward the idea of "property for people's livelihood" in the industry, and advocated the controlling of real estate development costs in many ways, so as to effectively control housing prices and give benefits to people. According to insiders, Evergrande gave benefits to people initiatively and put quantities of products of high cost-effectiveness into the market, making it obtain a bumper year in macro-controls.

SOURCE Sina Leju

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