First-line room price promotion area price is expected to loosen

Evergrande took the lead in 85 percent sales of all real estate control under the pressure, the first-line property developers to regain "cash for the King", through the accelerated turnover for sustained growth reserve energy. 5th, the constant Land production (3333.HK) announced that the company in the country all real estate will be unified 15%.　　Evergrande Real estate officials said that in the coming period, the housing market downturn will be inevitable, increase efforts to promote, rapid withdrawal of funds, not only can expand market share, but also for the future of the industry mergers and acquisitions and market integration to prepare. Insiders pointed out that the rational return of house prices is the real housing demand for effective release of the prerequisite, but also to break the property market "Frozen" the key factor.　　And Evergrande and other first-line real estate business will have a strong demonstration effect, is expected to drive regional housing prices into the adjustment period.　　Accelerate turnover increase in cash at present, the real estate enterprise's money fund is very abundant. According to wind data statistics, at the end of the first quarter of this year, the 102-A-a-share real estate enterprises held a total of 179.2 billion yuan of money, an increase of 60.4%, a record three years since the new high. Among them, Vanke (000002) handheld cash 17.92 billion yuan, higher than short-term borrowings and the sum of long-term loans due within one year.　　In addition, the first open shares (600376), Poly Real Estate (600048), Jinrongjie (000402) and other companies monetary funds are more than 10 billion yuan. Evergrande Real Estate recently announced sales results, this April, the company achieved contract sales of 3.74 billion yuan, the contract sales area of 578,000 square meters. January-April, the company achieved a total contract sales of 12.13 billion yuan, contract sales area of 1.893 million square meters, the year-on-year growth of 120.3% and 60.4% respectively. In mid-April, Evergrande Real Estate issue priority paper raised 600 million dollars. Under the double influence of sales and bill issuance, Evergrande Real estate held a significant increase in Money holdings.　　As of April 30 this year, Evergrande's cash balance amounted to HK $20.99 billion, an increase of 28.3%. Industry experts pointed out that enterprises to improve the rate of return on net assets there are two main ways, one is to accelerate turnover, expansion of the scale, the second is to increase the price, maximize unit profits. In a real estate downturn and a smooth period of development, first-line developers tend to tend to the former way.　　In the industry adjustment period, the pursuit of high turnover and large-scale expansion of the housing enterprises will usually reduce inventory, increase in cash. To Vanke, for example, in 2009, the company's inventory turnover rate of 0.54, which means that the company's inventory less than two years will be digestible, and real estate project development cycle is generally 2-4 years. At the end of the first quarter of 2010, the inventory of all kinds of Vanke was 5.9 billion yuan, accounting for only 5.7%.　　Xiao, executive vice president of Vanke, said that the company's current financial position and inventory structure was healthy enough to cope with possible changes in the market because of its steady operation. Key layout of the two or three-line city with a large number of cash in the first-tier housing companies generally said, will avoid early price rises too fast hot cities, while continuing to watch two or threeLine city, hope in the real estate market adjustment period, low-cost access to quality land reserves. In April this year, Evergrande Real estate contract sales average price of 6,467 yuan per square metre, an increase of 32.4%; The reason is that the company's main project layout in the two or three-line city, price increases are limited, the impact of the policy is relatively small.　　The company said that in the future, the company will continue to adhere to the prudent operation of the strategy to avoid with other property developers The Sur high prices and high-risk cities. Vanke also attaches great importance to the two or three-line city's own needs. Because of the country's demand for asset allocation, which is concentrated in a handful of hot cities, house prices have risen much higher than the country as a whole, Xiao said. By contrast, most of the two or three-line cities with their own needs are more stable. The company will continue to focus on the benign expansion of the two or three-line cities.　　2009, Vanke added 44 items, most of them are located in two or three-line cities, the new project floor land price is only 2401 yuan/square meters. Industry insiders pointed out that the regulatory policy is mainly targeted at the city housing prices too fast.　　In the further development of the town, the two or three-line city is ushering in a fast-growing period, and the early layout of the two or three-line city's real estate development enterprises will benefit obviously. 2009, the two or three-line city real estate sales accounted for more than 60%.　　For example, the company's April contract sales amount of the top 3 areas of Shijiazhuang, Chongqing and Changsha, accounting for 18.7%, 14.1% and 10.6% respectively. Market participants believe that in the industry adjustment period, the first-line housing enterprises to improve asset turnover, expand the two or three-tier urban layout, is to stabilize the operating rate, increase effective supply measures, conducive to the real estate market as soon as possible "soft landing."