Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Mingtiandi 2022 Event Calendar
    • APAC Residential Forum 2022
    • Asia Logistics Forum 2022
    • Asia REIT Forum 2022
    • APAC Data Centre Forum 2022
    • Singapore Focus Forum 2022
    • Office Strategies Forum 2022
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

Evergrande China’s 2016 Sales King as Top Developers Boost Performance by 82%

2017/01/10 by Michael Cole Leave a Comment

Evergrande Xu Jiayin

Evergrande boss Xu Jiayin finally gets to be #1. But Wang Shi would never wear that jacket

Thanks to a year of super-charged real estate sales, Evergrande Group unseated 2015 champion China Vanke to become the mainland’s largest property developer by sales for 2016.

The shift in the top ranks of China’s homebuilders came as the three largest developers recorded an average increase in sales of nearly 82 percent over their 2015 performance, following moves by the government to loosen lending practices and encourage home sales.

Top 10 Developers Enjoy Banner Year

China Evergrande reported total contracted sales of RMB 373.73 billion ($53.9 billion) in 2016, an increase of 85.4 percent over its performance the previous year, according to a filing with the Hong Kong stock exchange on Friday. Vanke, which placed second in 2016, saw its sales climb by 40 percent to RMB 364.77 billion for the year, while Country Garden Holdings came in third by growing its sales by 120.35 percent to RMB 308.8 billion during the same period. Combined, the top three developers, all of which are based in Guangdong province, had contracted sales of RMB 1 trillion in 2016.

China Top 10 Developers

Source: China Index Academy, MIngtiandi

Taking the fourth through tenth spots in China’s mainland property derby were Greenland Group with sales of RMB 258 billion, Poly Real Estate Group with RMB 210 billion, China Overseas Land and Investment at RMB 202 billion, Sunac China at RMB 150 billion, China Fortune Land Development at RMB 120 billion, Greentown China Holdings with RMB 114 billion and China Resources Land coming in tenth with RMB 108 billion, according to data compiled by China Index Academy, an arm of mainland property portal Soufun.

Together, the nation’s top 20 builders took up more than a quarter of the market last year, raking in combined sales of RMB 2.98 trillion. That’s up from 1.96 trillion yuan, or 22.4 percent of the market in 2015.

Loose Lending Favors Large, Aggressive Players

The burst in sales for the top developers comes in a year when double-digit home price increases in many mainland cities fueled fears of a property bubble. After several rounds of interest rates cuts and loosening of restrictions on home purchases in 2014 and 2015, China’s housing market roared back in early 2016, before authorities began clamping down on home sales again during the second quarter.

Throughout the ups and downs of China’s recent housing market cycles, Evergrande has been among the industry’s most aggressive players, acquiring projects and piling up debt to build market share.

In 2015, credit ratings agency Moody’s Investors Service criticised Evergrande’s HK$6.5 billion ($839 million) acquisition of three Chengdu projects amounting to more than 374,000 square metres of space, citing concerns over the company’s debt leverage.

An April 2016 report by Bloomberg put the company chaired by billionaire Xu Jiayin at a 6.2 percent chance of defaulting on its debt obligations in the next year. Undeterred, Xu went on to pay RMB 3.6 billion ($553.8 million) for a 52.78 percent stake in Shenzhen-listed real estate developer China Calxon Group later that same month.

While these aggressive moves have helped Evergrande win the top spot for sales, they have not always been helpful to the developer’s bottom line. During the first half of 2016 Evergrande Real Estate’s core net profits fell by 23 percent as the company’s rising revenues failed to offset higher costs, including a three-fold increase in its cost of financing.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Research & Policy Tagged With: China Fortune Land Development, China Overseas Land and Investment, China Resources Land, China Vanke, Country Garden Holdings, Evergrande Real Estate, Greentown China Holdings, Poly Property Group, Sunac China Holdings, weekly-sp

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Mingtiandi Delivered

MTD TV

Data Centre Operators Tackle APAC Expansion Challenges in MTD TV Panel
varoon malik thumbnail
Global Capital, COVID-19 Drive Demand for Real Estate Market Information: MTD TV

More MTD TV Videos>>

People in the News

daigo Hirai BlackRock
Asia Real Estate People in the News 2022-08-08
Bryan Southergill
Ares Hires Bryan Southergill to Run Asia Real Estate Business
Wu Bingqi CR Land
Asia Real Estate People in the News 2022-08-01
Jennifer Weitzel GLP
Asia Real Estate People in the News 2022-07-25

More Industry Professionals>>

People in the News

Asia Real Estate People in the News 2022-08-08

daigo Hirai BlackRock

BlackRock’s appointment of a new head of Japan real estate leads this week’s roundup of personnel moves from around the … Read More>>

Ares Hires Bryan Southergill to Run Asia Real Estate Business

Bryan Southergill

After more than eight years leading real estate investments for KKR in Asia, Bryan Southergill has taken on a new role … Read More>>

Asia Real Estate People in the News 2022-08-01

Wu Bingqi CR Land

Leadership changes at mainland real estate firms lead this week’s collection of personnel moves from around the region, … Read More>>

Asia Real Estate People in the News 2022-07-25

Jennifer Weitzel GLP

A pair of senior level hires in the data centre sector lead this week’s collection of personnel moves from around the … Read More>>

More Industry Professionals>>

Latest Stories

Li Sze-lim R&F
Guangzhou R&F 2021 Net Loss Doubles to $2.4B After Write-Down
kei hoi pang Logan
Logan Halts Payments on Offshore Bonds, Appoints Advisors for ‘Holistic’ Restructuring
stars of kovan - fortune reit, ck asset
Fortune REIT to Buy CK Asset Singapore Project and More Asia Real Estate Headlines

Sponsored Features

For Hong Kong’s Office Market, Border Reopening Holds Key to Unlocking Demand
Top 3 Trends Driving a Connected Experience in Commercial Real Estate
Malaysia Industrial Park Offers Opportunities to Heavy Industry Enterprises

More Sponsored Features>>

MTD-QR-Code-320

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2022 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Membership
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2022 China Advertising Media Ltd (Samoa). All rights reserved.