Country Garden tops the world with $342m in daily sales
The property developer sold an average of one two-bedroom unit every minute and its sales are increasing, but Beijing may still put the brakes on
A Chinese property developer has become the biggest in the world in terms of sales, with a turnover of 412.5 billion yuan (US$61.8 billion) in the first half this year, according to figures released by a private company.
Leading property developer Country Garden broke records in term of sales in the first half of this year, according to the figures. The Shunde-based developer has sold an average of 2.28 billion yuan (US$342 million) worth of flats per day since the beginning of this year.
That means it sold a two-bedroom unit worth 1.58 million yuan (US$237,000) every minute. These figures were based on the latest data by the China Real Estate Information Corporation, which declared Country Garden the world’s best-selling property developer.
Admitted to the Hang Seng Index last November, Country Garden led Chinese developers with annual sales of 550.8 billion yuan (US$82.6 billion) in 2017, according to the company’s annual report.
Through its joint ventures and associates, it sold a total of 1,468 projects covering 768 counties or towns, 220 cities and 30 provinces in China. Country Garden trumped Vanke and China Evergrande, which reported sales of 304 billion yuan and 302 billion yuan respectively in the first six months.
Rounding off the top 10 list were Poly Property, SUNAC, Greenland Holdings, China Overseas Land and Investment, Future Holdings, Longfor Property and China Resources Land.
Half of the top 20 developers surpassed their own sales targets in the first half, thanks to loose housing policy in first-tier and second tier cities and a sharp surge in third-tier and fourth-tier cities.
Altogether the top 100 developers sold more than 2.6 trillion yuan worth of properties in the second quarter, an increase of 35% on the first quarter.
This was consistent with official data from the National Statistics Bureau, which said home sales were up 11.9% in the first five months. Second half sales are even more optimistic because second half property sales usually make up 60% of total sales.
With a 420 million square meters of land reserve, analysts expect Country Garden sales this year could top 800 billion yuan, an increase of 45%.
But, of course, a lot depends on Beijing, which is stepping up its campaign against soaring home prices. Last week, the official Hunan Daily opened fire at property speculators, brokers and developers, calling them “undiscovered traitors” because they accumulate, bluff and push home prices to record levels that challenge the order of the new China.