Evergrande announces 85 percent sales of the national property

Yanhong developers take the initiative to lower prices, than expected to come earlier.　　Yesterday, Evergrande (03333.HK) announced in Hong Kong that all the group's products would be discounted to 85 percent external sales. This is the round of macro-control, the first publicly announced the price of large developers. In the current situation of the real estate market, "Price first gun" has begun.　　　　Before, people expected to wait until the new deal two or three months after the launch. Return funds ready to land market according to the practice, Evergrande Property will disclose its recent operations to investors on the day of 5th.　　But this time, the group in passing announced the bombing effect of the decision. However, on April 13, Li, vice president of Evergrande Property, had disclosed that the Group would pursue the principle of low price sales, with 85 percent promotions for all products. But during the "51" period, the promotional measures were not available.　　Perhaps it was a deserted business during the holiday season, when Evergrande's management was determined to implement a discounted plan.　　For this resolution, Evergrande property a senior to the "First financial daily" revealed that the market is bad, to cash for the king, the group intends to use this marketing plan in the market to pre-empt the first step, to seize the market share. "At present, the group has a cash balance of more than 20 billion, plus the sale of funds, conducive to our market adjustment to a certain degree after the bottom of the land market."　　Said the senior executives. The top executives also said that, given that the price of Evergrande's products had risen by a certain margin from last year, it would not have a noticeable impact on performance even if the small adjustments were made.　　According to data released yesterday by Evergrande Property, the average selling price of the first 4 months of this year was 6467 yuan/sq m, up 32.4% from a year earlier. Evergrande's move out of this first step does not seem to be an accident. Guangzhou, the marketing director of a big developer, commented: "Evergrande has always been the fastest runner." Only in the time node, the constant land production of the leading price, still more than expected to come a little earlier.　　Previously, the market is widely expected, developers of the first round of price reductions, should appear in the property market after the new deal two or three months. Scale of the price reduction or at the beginning of July or August 2008, "real Estate one brother" Vanke a (000002.SZ) had "inflection point theory" as the first, the start of the developer price Reduction.　　Two years later, Evergrande landed the "first wand". Data show that the constant land production in the first quarter of this year's sales, to 1.295 million square meters sales record beyond Vanke.　　This means that if we look at sales alone, Evergrande is occupying the biggest market share. The demonstration effect of the constant land production or will drive other developers to reduce prices.　　The head of a Shenzhen real estate group said the scale reduction would occur in July or August, as many of the projects that began to rush in the fourth quarter of last year will focus on the launch and will have a blowout. Recently, the Golden Land Group (600383.SH), Investment real Estate (600024.SH), China Sea (00688.HK), Poly Real Estate (600048.SH) related to the owner said, because the group's current volume of less, will not be a price promotion.　　As for the following market, it remains to be seen, if the market changes, sales will generally be "fluctuation". The head of the Poly real Estate marketing department also said that the price adjustment would be a trend for some time to come, but given the differences in each market, the major groups would adopt different marketing methods to deal with.　　In fact, Poly in the "51" period has been the first to adopt a Low-cost sales strategy, a new open property in Guangzhou to lower than the market expectations of the price of the opening.　　For the way to reduce prices, a number of enterprises marketing leaders said that, because most developers hand inventory is not much, the future supply to the new disk, so most developers will be in the new pricing on the fuss. Evergrande Real Estate related person also emphasized, although is the national 85 percent promotion, but because each city and the real estate existence difference, does not across. In addition, the market may be divided, some cities have a larger decline, while some cities are unaffected.