China Vanke June Sales Up 44% to RMB 19.4B

Although China’s real estate market is having a rough year, China Vanke, the country’s biggest developer, just declared a 44 percent increase in contracted sales.

According to an announcement from the company on Friday, the newly Hong Kong listed real estate company had contracted sales of RMB 19.4 billion during June, making it the second biggest sales month in the company’s history.

So far this year, China Vanke has achieved RMB 101 billion in sales – an increase of 20.6 percent compared to the same period last year, and says that it is on track to achieve its 2014 sales target of RMB 200 billion.

The company’s performance was up 14.6 percent in terms of square metres sold during the period from January to June, reaching 8.21 million square metres for the year to date. Of that total, 1.74 million square metres were sold in June.

Stronger Developers Performing Well

Vanke’s brisk sales during one of the most challenging years for China’s real estate market appears to reinforce comments made by the company’s CEO, Yu Liang, during May, when he predicted that the majority of the country’s developers would disappear within the next 15 years.

In remarks to the press at the time, Yu indicated that for industry leaders such as Vanke, the more competitive environment that is developing as the country’s real estate industry slows down might work to their advantage as the industry moves from the “golden age” and into the “silver age.”

In contrast to Vanke’s positive sales figures, smaller developers in Ningbo and Hangzhou have collapsed this year, with a number of other companies simply having been absorbed by their larger or healthier competitors, such as in the case of Greentown China, which was acquired by Sunac Holdings.