Vanke and Evergrande Ranking Top Two among China’s 500 Real Estate Companies for Three Consecutive Years
BEIJING, March 22, 2013 /PRNewswire/ — On March 22, the Release of Assessment of 500 China Real Estate Development Enterprises & Summit of the 500 Companies was held in Beijing, which was jointly organized by China Real Estate Research Association, China Real Estate Association and China Real Estate Assessment Center. An original report by Sina Leju follows:
The report shows that China Vanke and Evergrande continue to be the first and second of the top 10 real estate development companies in China respectively, jointly leading the national market. It is worth mentioning that Vanke and Evergrande have monopolized the top two of China’s 500 real estate companies for three consecutive years. In addition, Vanke and Evergrande obtained the sales award of 10 million square meters. Vanke and Evergrande go halves in various sub-lists.
With its super standardized operational capability, the No. one size and brand in the country and other advantages, Evergrande won the First in the “Top 10 Comprehensive Development Cities” and “Top 10 City Coverage” in the sub-list of the top 500 real estate companies. As for responsibility of social security as well as outstanding contributions in taxes and charitable donations, Evergrande ranks second in the “Top 10 Responsible Real Estate Companies”. In addition, Evergrande ranks in the top positions in the sub-lists of the “Top 10 Tourism Properties”, “Top 10 Innovation Capability” and “Top 10 Operational Efficiency”. With the shrinking gap between the two major real estate companies, the battle between Vanke and Evergrande for the top one is becoming more intense.
The report pointed out that 2012 is a year of normalization of real estate control policies. The leading companies accelerated to take the lead, further promoting the industry concentration. In 2012, the top 10 real estate development companies obtained a total sales value of 797.366 billion yuan, accounting for 32% of the total sales of the top 500, with an increase of 4% compared with 2011. In view of sales concentration, the market share of the top 10 real estate enterprises increased from 8.57% in 2009 to 12.37% in 2012, the highest in recent years. In view of threshold for enterprises, the number of one-hundred-billion enterprise expanded from one to three and the number of 50 billion enterprise expanded to 8 in 2012. The competitive formation of the entire industry has turned from ten billion competition in previous years to hundred billion. The advantageous leading companies show a development trend of being continuously stronger by virtue of their scale advantages.
Analysts pointed out, this is the era of hegemony by giants. The comprehensive capabilities of the “Four Kings”-Vanke, Evrgrande, Poly and China Overseas in the listed real estate companies are the most prominent, but the scale of Poly and China Overseas is not obviously advantageous, compared with Vanke and Evergrande. Vanke and Evergrande have retained their top positions in annual sales and annual sales area respectively in China real estate companies for four consecutive years. It is worth noting that since its listing in 2009, so far Evergrande has exceeded sales targets for four consecutive years, and its growth, scale and profitability have been fully recognized by the industry. Therefore, the hegemony in the next era will be competed for mainly between Vanke and Evergrande.
SOURCE Sina Leju