The List of Top 500 Chinese Real Estate Enterprises Released, in Which Vanke Ranks First and Evergrande Ranks Second

The hosts say that this is the comprehensive evaluation of the comprehensive strength of China's real estate enterprises. According to the results, real estate enterprises can clearly grasp the market pulse, helpful for adjusting and optimizing the development strategies and operation modes, and improving the ability of real estate enterprises to response to the changes in the future.

The top 500 research report indicates that the median of the sales amounts of the top 20 real estate enterprises is 32.6 billion yuan, obviously larger than the median of the top 100 enterprises, which is 7.9 billion yuan. The threshold is remarkably higher. The competition of the whole industry has transferred from the scale of several billion yuan to tens of billions of yuan. Advantageous leading real estate enterprises have shown the development trend of being more and more powerful based on the advantage in scale.

Along with the whole improvement of the strength of top 100 enterprises, the trend of market concentration is more and more obvious. The report also indicates that the sales amount of the top 10 enterprises reaches 593.6 billion yuan, accounting for 42% of the total sales amount of the top 100 enterprises, and the sales area reaches 58.93 million square meters, accounting for 45% of the top 100 enterprises. The sales amounts of the top 20 enterprises and the top 50 enterprises are respectively 844.2 billion yuan and 1.173 trillion yuan, respectively accounting for 59.7% and 83% of the sales amount of the top 100 enterprises, showing the higher concentration degree of the market. Insiders say along with the further increase of the market concentration degree, the development status of the leading enterprises will substantially influence the competition trend of the whole real estate industry.

In addition, the report also indicates that the attraction of second- and third-tier cities for real estate enterprises is remarkably increasing. Due to the sufficient land resources, relatively low costs, and relatively less fierce competition, the real estate market of second- and third-tier cities is attracting numerous real estate development enterprises. "Second- and third-tier cities may become the best chance when real estate enterprises can exert themselves, and may become an important development direction of the real estate market in the future."

As the leader in the second- and third-tier cities, Evergrande ranks first in the sub-list of Top 10 Chinese Real Estate Development Enterprises in City Coverage. It is learned that Evergrande has started construction in the second-tier cities as early as in 2004 and in the third-tier cities comprehensively in 2010. By the end of February 2011, Evergrande had had projects in 62 cities in China, being worthy of the leading enterprise of the densest city coverage throughout the country.

Thanks to the advanced layout in the second- and third-tier cities, the performance of Evergrande in recent years has been greatly increasing. In five years from 2006 to 2010, the annual contracted sales amount of Evergrande had realized the increase of 29.6 times and the annual contracted sales area had increased by 31.6 times. In January and February of 2011, Evergrande had totally realized the sales amount of 14.29 billion yuan, increasing by 202.7% on a year-on-year basis, occupying the absolutely leading position among the inland real estate enterprises listed in Hong Kong.