【China Real Estate NET】Goocoo， Receive the First Place of 2017China’s Top 10Real Estate Developers in Anhui Province

Appraisal Results for 2017 China’s Real Estate Developers in Eastern China and Central China Has Been Released

Shanghai, Zhejiang, Jiangsu, Fujian, Anhui, Henan, Hubei, and Hunan, the four provinces and one city of Eastern China and three provinces of Central China are put together. What does this mean for China’s real estate market?

On June 27, China Real Estate Association, Shanghai E-house China R&D Institute China Real Estate Appraisal Center released the “Appraisal and Research Report for 2017 China Real Estate Developers inEastern China and Central China”, to announce the answers for us.Such appraisal and research report points out, in 2016, the real estate market of each province and city in Eastern China and Central China has an active trading, and the destocking is effective. The market in the two major regions is superior to the whole country, and the increasing speed of commercial housing’s sales area and sales amount is higher than the whole country. Meanwhile, some enterprises in the regions have made positive exploration on strategic transformation, cross-border operation, layout balancing, product upgrade, reformation and innovation, and etc. A number of enterprises with strong nationwide competitiveness have emerged.

Market: the Proportion Shares over Forty Percent of the Whole Country’s Real Estate Market

In 2016, the commercial housing sales area of the whole country is 1.57349 billion square meters in total, and the sales amount is11.7627 trillion Yuan in total, both of which reached the historical high. Seeing from the market performance of each province and city in the two major regions – Easter China and Central China, in 2016, the commercial housing sales area of the four provinces and one city in Eastern China is 424.4101 million square meterswith a year-on-year growth at 33.3%and a proportion in the whole country’s sales area at 26.97%; the sales amount is 3.816031 trillion Yuan in total with a year-on-year growth at 42.7% and a proportion in the whole country’s sales amount at 32.44%. For the commercial housing sales of the three provinces in Central China, the sales area is 268.1879 million square meters, with a year-on-year growth at 26.7% and a proportion in the whole country’s sales area at 17.04%; the sales amount is 1.435881 trillion Yuan with a year-on-year growth at 38.8% and a proportion at 12.21%.

No matter on sales area or sales amount, the proportion sum of the four provinces and one city in Easter China and the three provinces in Central China in the national market exceeds 40%, so their market significance is obvious. Moreover, seeing from the year-on-year growth rate on the real estate sales area and sales amount of each province and city, except Shanghai, the growth rate of real estate sales amount of the rest seven provinces is all higher than the national level, and on commercial housing sales area, except Shanghai and Hubei, the growth rate of the rest six provinces is all higher than the national level.

Enterprise: Core Real Estate Enterprises Have Outstanding Performance

The appraisal and research report indicates that, in recent years, the large and middle sized real estate enterprises have strengthened the competition of first and second tier cities in Eastern China on strategic level. On one side, the leading enterprises in the region has obtained considerable market share in their local market by virtue of leading the active promotion of deep ploughing strategy and have accumulated relatively high awareness, and their brand superiority is obvious; on the other side, some enterprises have moved their headquarters to the first and second tier core cities in the region so as to intensify their enterprise nationalization, especially the development layout in the regional market.

In the meantime, Zhengzhou, Wuhan, Changsha and other core second-tier cities in the Central China region have a outstanding market performance, and as pivotal area linking the central and western region as well as “the Belt and Road”, Central China has an increasingly growing strategic status, and is attracting more and more real estate enterprises to gather there for the reasonsdriven by the industrial development such aspopulation backflow, urbanization construction and etc.

Seeing from the appraisal results, in each sub-region of Central China, Greenland Group, Future Land, CIFI Group, Shimao Property Holding and Zhengrong Group have outstanding performance in 2016, which areranked as the top five of Shanghai region, among them Zhengrong Group has moved its headquartersfrom Fujian to Shanghai; in Zhejiang region, Greentown Group, Jiayuan Group, and Xiangsheng Group are ranked as the top three of Zhejiang; in Jiangsu region, ZhongnanZhidi, Landsea Green Real Estate, Rsun Group have a continuous outstanding performance, and are ranked as the top three of Jiangsu regional list; in Fujian region, Yango Group, Rongxin Group and Rongqiao Group occupy the top three of the region; in Anhui region, Goocoo Group, Wenyi Group and Weixing Group are ranked as the top three of the region. In each region of Central China, Jianye Group, Zensun Real Estate, Kangqiao Group are ranked as top three of Henan province by virtue of their outstanding performance in the region; FuxingHuiyu, Wuhan Real Estate Group, Baibuting Group are listed as the top three of Hubei; Dahan City Building, CSCEC Xinhe and Chanfine Group occupy the top three of Hunan region.

Mode: Combination of Asset-Light and Regional Deep Ploughing

Seeing from the regional appraisal at this time, as the real estate market is progressing towards the next half year, the competition among real estate enterprises is increasingly severe. To ease the financial stress, spread the operational risk, promote the scale expansion, accelerate the brand output, and enhance the competitiveness, more real estate enterprises in the region have chosen the “Asset-Light” mode to realize the expansion. Meanwhile, the real estate enterprise in the region are more focusing on the cross-industry and involve finance, medical treatment, property management, endowment resources, education, cultural tourism and etc.

Meanwhile, on regional layout, among the eight provinces and cities in Eastern China and Central China, Shanghai, Zhejiang, Jiangsu and Fujian have relatively more nationalized enterprises and regional deep ploughing enterprises, such as Greenland Group with nationalized layout, Zhongnan Group and Jiayuan Group with deep ploughing in the Yangtze River Delta, Rongxin Group and RongQiao Group with deep ploughing in Fujian; among the rest four provinces and cities, there are more provincial and urban deep ploughing enterprises, such as Jianye in Henan, Wenyi in Anhui, Rsun in Jiangsu, and etc. In 2016, Nanjing, Hangzhou, Hefei, Wuhan, Zhengzhou and other second-tier cities in the region had a prosperousmarket. The deep ploughing real estate enterprises focusing on the development of these regions and key cities have remarkable performance for the same year, and have outstanding performance on urban capacity.

Product: Only innovation can obtain greater opportunity

The appraisal and research report has also pointed out that, after many years of development most of the real estate enterprises in the region own mature product series and standardized development process. Under the background of consumption upgrade, more and more real estate enterprises tightly grasp the front line of consumption upgrade, continuously pursue the customer demand value, and actively seize the brand new growth points from the new consumption demands. In recent years, with the rejuvenation of consumer group, the representative real estate enterprises are all attempting to create upgrade and innovation based on existing product line, in order to provide high-standard and high-quality service for consumers.In addition to the innovation exploration of product customization, with the continuous upgrade of customers’ demands, except for the most basic living demand, customers also raise the various demands on their residence, such as health, safety, recreation, social contact and other aspects. Therefore, smart community, green product, healthy product and other innovative products are so generated constantly.

Furthermore, with the increasingly severe competition of regional market, the real estate enterprises are all making strategic adjustment and innovation attempt, and actively exploring the new mode including marketing innovation, business extension, financing innovation, and etc, so as to adapt the constantly changing market. In the future, in the meantime of confronting the vast market potential of the two major markets– Easter China and Central China, the real estate enterprises in the region must be faced with the challenge of market’s rapid change. Therefore, in order to obtain greater development opportunity in the industrial consolidation, the enterprises in the region must timely adjust their strategies, create their enterprise brands, and make forward-looking layout on the basis of fully understanding the market situation.

Schedule: Regional Appraisal Top List (Anhui) for 2017China’s Real Estate Developers in Easter China and Central China