Top100 sales list of China’s real estate enterprises in January 2022

2022-04-27 0 By

The monthly performance of the top 100 cities falls nearly 43 percent year on year. The sales performance of most large-scale real estate enterprises is poor in 2022.The supply area of commercial housing in 29 key monitored cities decreased by 43% and 58% respectively from the same period and month on month, while the transaction area decreased by 37% from month on month and the year-on-year decline widened to 46%.On the one hand, the Spring Festival holiday is approaching, many housing enterprises slow down the supply rhythm, supply downturn to a certain extent, resulting in a sharp decline in transactions.More importantly, since the second half of last year, the market downward pressure intensified, buyers wait-and-see sentiment is becoming stronger.From the enterprise level, the sales performance of most large-scale real estate enterprises in January was poor, and the overall performance of top100 real estate enterprises was lower than the same period last year and the monthly average level last year.February is expected to be affected by the Spring Festival holiday supply contraction, transaction or will continue to decline.In the long run, there will still be a certain scale of housing enterprises facing negative growth in the process of the current industry downturn.In 2022, the financing environment for enterprises will continue to be severe, and debt repayment pressure will remain high in the short term.Under liquidity pressure, no matter from the perspective of real estate enterprise operation or macro economy, enterprise guarantee completion and delivery become the primary goal.At the same time, the market crisis organic, industry m&a opportunities increase, under the current situation of the industry to open up m&a financing channels, mobilize the enthusiasm of enterprises m&a, is expected to ease the financial pressure of housing enterprises out of risk, prevent risk expansion, speed up market pressure clearing.In January 2022, China’s real estate market as a whole continued the cooling trend since the second half of last year, and the sales performance of most large-scale real estate enterprises was poor, and the monthly performance decreased significantly compared with the same period last year and the monthly average level of last year.In January, the top100 real estate enterprises realized the sales transaction amount of 525.6 billion yuan, the monthly performance scale decreased 39.6% year on year, and 43% lower than the monthly average level of 2021.Looking forward to February, the real estate market is still not optimistic, the transaction may continue to decline.Affected by the Spring Festival holiday, one, two – tier city supply or will be significantly reduced, transaction will continue to run low.The third and fourth tier cities will return home to buy property or weaker than in previous years, the overall recovery of the transaction is really limited, the traditional return home to buy property city will face a greater test.At present, it has become a consensus that the industry is going down and ushering in the era of negative growth.Commercial housing sales scale after 5 years of high operation, will be in the process of building bottom.On Jan 17, the National Bureau of Statistics released data on the national economy and the real estate sector in 2021.In 2021, new home sales and development investment in the real estate industry both hit new highs, up 1.9% and 4.4% respectively.But new starts, land purchases and development investment all fell to freezing points in the second half, with new starts and land purchases down 31 per cent and 33 per cent year-on-year.While completions rose by 2% to a record high, overall construction investment fell 14% year-on-year to its lowest level in four years.In 2022, it is imperative to guarantee completion and delivery whether from the perspective of real estate enterprise operation or macro-economy.Under liquidity pressure, enterprises mobilize all resources to give priority to completion and delivery, which has become an important starting point for revitalizing funds and improving cash flow.At present, Evergrande, Olympic Park, Kaisa, Pattern year and other housing enterprises have clearly put forward the “guaranteed delivery” target.At the same time, the Ministry of Housing and Urban-Rural Development has made it clear that it will resolutely deal with the risk of overdue delivery of real estate projects by 2022, and promote a virtuous cycle and healthy development of the real estate industry without speculation.In this context, in recent years, more and more large-scale housing enterprises have begun to pay attention to the improvement of their “delivery power” and “service power”.Improving product quality control, improving customer service system, and creating product delivery links and delivery standards with higher quality, more humanization and more emphasis on customer experience are all conducive to improving delivery rate and delivery satisfaction, and establishing positive corporate brand, reputation and credibility.In 2022, the industry liquidity risk continues, but at the same time, the acquisition opportunity is also increasing.On the one hand, for enterprises with great debt repayment pressure, it is extremely urgent to reverse the situation by selling projects and assets.On the other hand, the central enterprises, state-owned enterprises and some high-quality private enterprises with their own strength and policy support will have a greater initiative in the acquisition market.On January 6, the policy of debt-related M&A loans was implemented. For the debt-related m&a loans of the projects of insurance enterprises, the relevant indicators of “three red lines” are no longer included in the relevant M&A loans.On January 10, there was news that the central bank required 9 state-owned enterprises to provide liquidity support for 11 high-risk housing enterprises through the acquisition of project assets.With the opening of financing channels for mergers and acquisitions, the enthusiasm of the industry is mobilized.Strengthening the transfer and merger and acquisition at the project level is expected to ease the financial pressure of housing enterprises, prevent the expansion of risks, and speed up the clearing of market pressure.In 2022, the financing environment of housing enterprises at home and abroad is still severe.At present, Moody’s, Fitch, STANDARD & Poor’s three major rating agencies on the credit rating of housing enterprises to downgrade, mostly for the housing enterprises have been violent thunder or default.While the overseas financing environment is tight, real estate enterprises are still facing great pressure of overseas debt repayment.According to statistics, the overseas debt financing maturity of 100 typical real estate enterprises in 2022 is mainly concentrated in the first half of the year, among which the maturity scale in January is as high as 62.7 billion, the highest in the past two years.In addition, March, April, June and July are all small peaks of debt repayment of overseas debt financing.In addition, combined with the weak sales, the refinancing environment for real estate enterprises in 2022 May be more tight.In this context, it is expected that the possibility of negative rating or rating downgrade is still high in 2022.Among them, the housing enterprises with low credit rating will be more affected, mainly reflected in the shortening of the average maturity of bonds, the average coupon rate remains high.Under the current industry situation, enterprises should be as vigilant as possible to avoid falling into a negative credit cycle.In January 2022, the real estate market got off to a dismal start, with a rapid decline in supply and demand. The supply area of commercial residential buildings in 29 key monitoring cities decreased by 43% and 58% respectively, and the transaction area decreased by 37% and the year-on-year decline expanded to 46%.First-tier city transactions again depressed, down 21%, year-on-year decline expanded to 38%.Among them, the sixth batch of new houses in Shanghai concentrated in the market, the volume of transactions, a sequential growth of 43%, still down 8% year-on-year.Beijing, Guangzhou transaction unusually depressed, nearly halved year-on-year, Shenzhen year-on-year decline is as high as 60%.Specifically, the supply of new homes in Beijing decreased significantly, and the performance of the reduction continued to divide, with most projects continuing the promotion efforts at the end of 2021.Shanghai’s enthusiasm to explore new markets continues unabated, with the average elimination rate of new opening projects remaining above 80%, and nearly 70% of the opening projects “sunshine”.Guangzhou real estate enterprise supply rhythm slowed down, some hot plate to stop distribution cooperation, visit volume, to reduce the rate of decline.Shenzhen market is obviously cold, part of the real estate deactivation rate as low as 10%, once the network red disk open nationwide marketing.25 two, three – line city transaction fell to the low, the same, sequential decline in more than 40%.Affected by the same period last year extremely high base, only Chengdu transaction year-on-year positive growth, the rest of the city transaction have different degrees of decline.Nearly half of the second and third tier city turnover year-on-year halved, Hangzhou, Dongguan, Xi ‘an and other year-on-year decline is more than 70%.The main reasons are the following two factors: First, the Spring Festival holiday is approaching, many housing enterprises slow down the supply rhythm, supply downturn to some extent led to a sharp decline in transactions.A typical example is Xi ‘an. Due to the epidemic prevention, the real estate market almost stopped, and both supply and demand hit a new low in recent years.More importantly, the market downward pressure intensified, buyers wait-and-see sentiment is becoming stronger.For example, Nanjing, Jiangbei, Jiangning and other once hot plate began to encounter cold, hot plate has no need to shake, the edge plate market is worse, transaction to abnormal bleak.From the point of view of weekly transaction data, 32 key monitoring city transaction continued low operation.Among them, one, two – tier cities only Shanghai, Chengdu transaction remains at a high level, the rest of the city transaction weakened.Third – and fourth-tier cities did not see the hometown-buying boom, and the transaction volume in lianyungang, Yangzhou and other traditional hometown-buying cities only picked up slightly.Source: Cleary