[photopress:realestatefront.jpg,full,alignright]A research report of the top 100 Chinese real estate firms has been released in Beijing, providing industry insiders and investors with a general outlook of the industry.
This was a joint program established by the Enterprise Research Institute of Development Research Centre of the State Council of China, the Institute of Real Estate Studies of the Tsinghua University and the China Index Academy.
The study has been conducted for three consecutive years, beginning from 2004. The report will have a strong impact on domestic financial institutions and local governments when they decide to lend loans or sell land to these companies.
The results of this annual report have become one of the important standards for judging the operational strength of Chinese real estate enterprises.
Among the top 100 real estate firms, 29 are located in East China, 29 in North China and 26 in South China. Compared with the previous year, the number of top 100 real estate firms dropped by 10 in East China, indicating an adjustment of the overheating housing market in the region. However, two more firms were added in North China, and eight more in South China.
Combined sales revenues of real estate firms among the top 100 in the three regions reached RMB188.34 billion ($23.4 billion), accounting for 14.26 per cent of the nation’s total.
Predicting a sustained growth of the industry, most of the real estate firms are actively reserving land resources for future development. Last year, reserved land area of the top 100 firms reached 402.11 million square metres, with 43 enterprises each having a reserved land area between 1 million and 5 million square metres. Nine enterprises each have a reserved land area of more than 10 million square metres, up from 2003 when there were only five such companies.
The average annual return on total assets, return on equity and sales profit rate of the top 100 enterprises during the 2003-05 period were 7.83 per cent, 18.68 per cent and 17.4 per cent respectively, according to the research report.
Source: China Daily