Evergrande Vanke Benefits Price reduction or will copy bottom land

Zhang Xiaoling July 12, Evergrande announced its sales. As of June 30, Evergrande sales of 20.98 billion yuan, has completed this year's sales target of 58%. Under optimistic expectations, the company announced an annual sales target of 30% to more than 40 billion.　　While some have questioned the move as a "show", the Evergrande price reduction strategy does come into effect. Data show that Evergrande June contract sales of 4.8 billion yuan, up 26.6%, set a single month in 2010 years the highest sales, contract sales area of 806,000 square meters, sales price of 5952 yuan/square meters.　　The first half of the contract sales area of 3.339 million square meters, sales average price of 6282 yuan/square meters, respectively, compared with the same period last year 54.7% and 32.5%. It is noteworthy that the June sales average of Evergrande fell by 5.9% in May, Evergrande said it was due to a drop in sales of higher prices, which led to a lower average.　　But Evergrande also said that the 85 percent promotion has increased the real estate price ratio, indeed expanded the turnover. Another one to achieve better performance is Vanke, also took the low price of the market strategy.　　Vanke June to achieve sales amount of 8.77 billion yuan, May growth of 71.6%, Vanke cumulative sales area of 3.202 million square meters in the first half of this year, sales amount of 36.77 billion yuan; and after the new deal, Vanke's sales average price down about 15%. Developers don't get Lucky Evergrande Real Estate President Xia Haijun that June China's several big developers, adopted a partial price adjustment strategy, so its June sales performance better.　　In the second half of the year, if the general downward situation of house prices, do not exclude the state will introduce further regulatory policies.　　In a recent investor exchange, the group said the company believes prices will fall in some cities in the second half of the year, including Beijing, Shanghai and Shenzhen, and the company will adjust its project prices according to the specific market conditions.　　Reporters in the builders, the sea, green space and other companies said that the expected regulation will not terminate in the short term, the second half of the sales will certainly be. "The current price reduction is the consensus of the housing companies, the problem is how much to drop."　　China Securities analyst said the AU group's view is basically consistent with the agency's analysis. According to the research of Wang Zhizhong, a real estate consultant of the Central Bank Research Bureau, the capital pool of the development enterprises at the end of April 2010 reached the highest level in the history, about 917.3 billion yuan, but May, June 2 consecutive months fell, June single month fell to 183 billion yuan, a single month of capital Gap reached the highest level;　　The development enterprise's capital chain will be subjected to the severe test after 3 months, proposes the development enterprise not to be lucky, adjusts the price strategy positively, obtains the strategic initiative. Huayuan Real Estate Chairman Ren Zhiqiang predicted that the second half of the supply of commercial housing will increase substantially, the market will inevitably aggravate competition, the price fluctuations would be more obvious. If the price decline will promote sales, then the situation will stabilize; if the vicious competition of price does not expand sales, then the lagging effect of policy will be on the investment and capital chainReflected and adversely affected the economy as a whole.　　Hand-held cash ready to bottom land first price let Evergrande and Vanke and other housing enterprises to achieve more market share, at the same time have more cash. Vanke Executive Vice President Xiaoli told reporters that Vanke currently holds 17.92 billion yuan in cash, can cover short-term borrowings and the sum of long-term loans due within one year (12.74 billion yuan).　　As of June 30, Evergrande Cash is 21.04 billion Hong Kong dollars, the highest level since the listing. At the operational level, Vanke slowed the pace of land use in 4 May, but is preparing for the second half of the land market to look for the opportunity to quality lands. "The last round of adjustment Vanke missed some opportunities to expand the land reserve.　　"People in Beijing Vanke said. "2010 is a good time for the housing enterprises with funds to expand the land, to 2011 years there is no such a good opportunity," Xia Haijun said, Evergrande has accumulated sufficient cash by price reduction, and will certainly absorb and reserve land in the current market situation, and still be dominated by two or three-line cities.