Cover News Reporter Yao Ruipeng
Since the beginning of this year, a number of listed real estate companies, including Huayuan Real Estate and Midea Real Estate, have announced their withdrawal from the real estate industry. On the evening of July 7, Gree Real Estate also announced its withdrawal from the real estate development business. In the competition in the real estate market, some companies have chosen to leave.
Halfway through 2024, with the adjustment of various real estate policies, real estate companies have also handed over their half-year report cards in this summer. Overall, the total sales of the top 100 real estate companies are still declining, but the year-on-year decline has narrowed for four consecutive months, and the policy effect is gradually emerging. According to the data, in the first half of 2024, the total sales of the top 100 real estate companies will be 2,083.47 billion yuan, a year-on-year decrease of 41.6%. And there are only 6 100 billion real estate companies left, a decrease of 1 from the same period last year.
Professionals said that with the deepening of the role of the 5.17 New Deal and the gradual implementation of state-owned enterprises such as the replacement of old and new, real estate companies have seized the opportunity to promote sales growth, and there is still room for the recovery of the property market in the second half of the year.
Top 20 of the top 100 real estate companies in the first half of 2024
The total sales of the top 100 real estate enterprises was 2,083.47 billion yuan
There are only 6 real estate companies with sales of more than 100 billion yuan
In the blink of an eye, half of 2024 has passed, and various industries have recently issued half-year report cards, among which the sales list of the top 100 real estate companies in the first half of the year has been released. According to the statistics of the China Index Research Institute, the total sales of the top 100 real estate companies in the first half of this year was 2,083.47 billion yuan, a year-on-year decrease of 41.6%; In terms of sales target completion rate, in the first half of 2024, the average target completion rate of typical real estate enterprises was 41.5%, compared with 63.2% in the same period last year. According to the data released by the CRIC Real Estate Research Center, the sales volume of the top 100 real estate companies in the first half of the year was 1,851.83 billion yuan, a year-on-year decrease of 39.5%, and the decline rate narrowed by 4.7 percentage points.
It is worth noting that the overall decline in corporate sales has led to a decrease in the number of 100 billion real estate companies. In the first half of the year, there were only 6 real estate companies with sales of more than 100 billion yuan, a decrease of 1 from the same period last year. Specifically, Poly recorded sales of 173.3 billion yuan in the first half of the year, ranking first; China Shipping achieved sales of 148.3 billion yuan, ranking second; Vanke's sales of 126.72 billion yuan ranked third. In addition, Greentown China, China Resources Land, China Merchants Shekou, C&D Real Estate, Binjiang Group, Longfor Group and Yuexiu Real Estate are also among the top 10.
Although the overall situation in the first half of the year was not good, from the perspective of monthly sales, the sales of real estate companies in June have improved compared with May. In June, the monthly sales of the TOP100 real estate companies increased by 26.05% month-on-month, nearly sixty percent of the top 100 real estate companies achieved month-on-month growth in performance, and nearly three-thirds of real estate companies achieved year-on-year growth in performance.
Poly Development, Greentown China, China Resources Land, Binjiang Group, China Jinmao, Yuexiu Real Estate, China Railway Construction, Poly Real Estate and other companies also achieved a year-on-year increase in monthly performance. Among them, the performance of China Resources, Binjiang, Yuexiu, Jinmao and Poly Real Estate increased by more than 50% month-on-month in June, and Poly, China Merchants, Greentown and Longfor also achieved growth of about 20%.
Real estate companies remain cautious in acquiring land
Central enterprises and state-owned enterprises are still the main force
According to data from the China Index Research Institute, in the first half of 2024, the total amount of land acquired by the top 100 enterprises will be 380.1 billion yuan, a year-on-year decrease of 35.8%, and the decline will continue to expand compared with January to May. In the first half of this year, real estate companies remained cautious in acquiring land.
Among them, from January to June 2024, C&D Real Estate acquired 27.9 billion yuan of land, ranking first in the industry; China Construction Yipin ranked second, with a land acquisition amount of 21.3 billion yuan; Greentown China ranked third, spending 19 billion yuan to acquire land in the first half of the year. From the perspective of new value, C&D ranks first in the industry with a value of 60.8 billion yuan; China Resources Land ranked second with 48.1 billion yuan, and China Construction Yipin ranked third with 47 billion yuan.
From the perspective of the top 10 real estate enterprises in key cities in terms of land acquisition, central enterprises and state-owned enterprises are still the main force, and more than half of the top 10 real estate enterprises in key cities are central enterprises and state-owned enterprises. The China Index Research Institute believes that this is directly related to the relatively good financial situation of stable central state-owned enterprises.
However, according to CRIC statistics, 70% of the top 100 real estate companies that have acquired land have invested in the first half of the year compared with the same period last year, and the top 10 sales have declined to varying degrees, even if the investment pace of central state-owned enterprises will slow down significantly in 2024. Among them, more than 30% of enterprises fell by more than 50% year-on-year. In the first half of the year, most private real estate enterprises have stopped acquiring land, and Longfor Group and Binjiang Group are one of the few private real estate enterprises in the industry that are still actively storing land.
5.17 The New Deal boosted market sentiment
There is still room for the recovery of the property market in the second half of the year
At the beginning of this year, the regulator clarified the policy direction of stabilizing the market, preventing risks, and promoting transformation. On April 30, the Politburo meeting further set the tone of the property market, and the policy focused on "stabilizing the market" and "destocking". On May 17, the central bank and other ministries and commissions issued a blockbuster new credit policy, bringing the nationwide housing purchase credit policy to the "most accommodative era in history". Since then, many cities have actively followed up and implemented relevant policies, reducing the down payment ratio, canceling the lower limit of commercial loan interest rates, and reducing the interest rate of provident fund loans.
From the perspective of market performance, the policy effect has gradually become effective, and the market sentiment in core cities has rebounded, according to the data released by the China Index Research Institute, driven by the mid-year performance of real estate enterprises, the scale of new housing transactions in key cities in June has rebounded month-on-month compared with May, and at the same time, under the influence of the base fall, the year-on-year decline in June has narrowed significantly. The activity of the second-hand housing market remained at a high level, and increased year-on-year under the low base in the same period, and the overall transaction performance was better than that of new houses, and the policy effect of Shanghai, Shenzhen, Hangzhou and other cities was obvious, among which the number of second-hand houses in Shanghai since June exceeded 1,000 sets of online signatures for many days.
On the whole, the implementation of the "517" package of real estate policies has a good role in boosting market confidence, and the activity of first- and second-tier cities in the short term has increased, but from the underlying logic, residents' income is the key to the recovery of the real estate market. Liu Lu, a professor at Southwestern University of Finance and Economics, said that there is still room for deepening the policy, optimizing both sides of supply and demand at the same time, increasing the activity of the real estate market, and there is still a lot of room for real estate sales in the second half of the year.
"From the perspective of real estate companies, accelerating destocking is the key in the second half of the year." Lin Sen, chief researcher of the cover real estate think tank and general manager of Sichuan Sanhecheng Enterprise Management Co., Ltd., said that in terms of policy, the government's collection and storage of unsold new houses, state-owned enterprises to collect the old and replace the new and other models have gradually landed, with the implementation of supporting funds, it is expected to play a positive role in the inventory of real estate enterprises. However, for real estate companies, under the further improvement of the external environment, real estate companies should speed up their promotional efforts and seize the opportunity to promote sales growth.