New Model for Chinese Real Estate Developers: Fast-turn Around
BEIJING, Oct. 18 /PRNewswire-Asia/ -- Evergrande Real Estate, seekingaccelerated growth, sold 4.537 million sqm of floor space during the firstthree quarters of this year, with sales revenue of RMB23 billion, a year-over-year increase surpassing 150 percent. During the third quarter, the developersold 2.303 million sqm of floor space, with sales revenue reaching RMB12.33billion. As such, the real estate player is expected to easily achieve itssales targets of 5 million sqm and RMB30 billion for 2009. Going forward, thedeveloper plans to adopt a "scale plus brand" strategy, maintaining landreserves of around 50 million sqm at any time, accelerating construction ofnew houses and expanding sales, while improving quality of its products, withthe goal of achieving an annual sales target of RMB50 billion by 2011. SinaLeju was the first media source to announce the release of this report, partof which is as follows. Fast-rising companies have always sought fast expansion based on a rapidturn around in the sale cycle, allowing them to gain market share and build uppositions in the industry. Evergrande adopted this strategy in a move todrive significant increases in results. In the real estate sector, implementation of such a strategy calls for asustained healthy supply of land reserves and construction starts. Since2006,Evergrande has maintained its leading position in land reserves and the areaof new houses under construction across China. The report released by CRIC(China) shows that as of the end of the third quarter, Evergrande owned landreserves reaching 51 million sqm, becoming the largest landholder in theChinese property market. Adequate land reserves can help companies avoidrisks resulting from price fluctuations. Price increases in buildings alwayslead to price increases in land, so healthy land reserves can provide aguarantee that a company can maintain steady growth. However, Evergrandedoesn't maliciously hoard the land it buys. According to a CRIC (China)report, Evergrande now has approximately 17 million sqm of floor space underconstruction, becoming the developer owning the largest area underconstruction in China. The CRIC (China) report shows that companies seeking fast turn around ofassets don't look for huge margins on their sales, but rather seek a highvolume of sales, garnering larger market share and speeding up the turn aroundthrough lower prices. Data shows that the average price for homes put on themarket by Evergrande was RMB5,329.5 per sqm for the first three quarters. "Projects initiated by Evergrande are commonly cheaper than theirsurrounding ones," said one market participant. Obviously, the developer'smarketing strategy is in line with its concept of "properties for the commonpeople". At the beginning of 2006, Evergrande had on hand land reserves of only 3.1million sqm, increasing to 51 million sqm by the end of Q3 2009. At the sametime, the property developer expanded its presence from Guangzhou and Foshanto 23 cities. Evergrande's rapidly expanded sales results and land reservesare mainly located in the country's second-tier cities. A study pointed out that the large number of land reserves, an operatingmodel based on fast turn around and the impending IPO are driving companies,such as Evergrande, to achieve a quantum leap in their development.Evergrande is planning to achieve its annual sales target of RMB50 billion by2011. At that point, the real estate sector's competitive pattern may changein China. For more information, please contact: Kevin Fax: +86-10-5895-1005 Email: Kevinmts@sina.com SOURCE Sina Leju Kevin, +86-10-5895-1005 (Fax), or Kevinmts@sina.com blog | link | more news | Realtors How to Find HUD Homes and Other Foreclosed Homes for Sale: There are tons of sites on which you can find foreclosed homes for sale. But one of the best sites to go to is http://www.homesales.gov. These are homes for sale by the federal government. The HomeSales.gov website holds an interactive United States map that lets you search homes by state and city and the number of bedrooms and bathrooms desired. The site has a simple search portal providing a host of properties for sale. Once you click on a property's address, you will end up on a page containing more information about the property: Address, County, Type (i.e., Residential-Single Family), List Price, As-is Value, Listing Date, Bid Period (in this area, you'll be able to find out whether or not a property has a pending contract), Property Details (number of beds/baths/year built, HOA Fees, FHA Qualification), and more. Further, in the Details section, you will be able to view a full property conditions report. Click here to see a sample Property Conditions Report, which contains info on the property's electrical, structural soundness, plumbing, and so much more. Anyone can purchase a government home, but to place a bid or to submit an offer on one of these properties, you must work with a realtor, servicing agent or broker. Find, specifically, a HUD realtor to help you submit your offer on a HUD home. I was previously a HUD realtor and to become one I had to go through formal training to be labeled a HUD realtor. The training was not difficult, but there are definitely procedures HUD realtors must be aware of to be classified as such. HUD provides counseling services on everything from buying a home to mortgage info and more to anyone seeking to purchase a home from the government. You can go to the main HUD website or call the HUD housing counseling referral line at 800-569-4287 for more information on their counseling services. Another good place to find foreclosed homes for sale is RealtyTrac. This is a paid membership service where you get, according to their website, exclusive access to the resources you need to research, buy, and sell distressed real estate. RealtyTrac offers a 7-day, free membership so you can test before buying (as of this article's printing). RealtyTrac has fast become a premiere website for real estate industry statistics. They are often quoted in national media. I often quote their statistics on my blog, Foreclosure-Millionaire.com. RealtyTrac has gone a step further in their sorting mechanism in listing foreclosed homes for sale. They sort properties for sale in the following categories: pre-foreclosures, bank owned (REO), foreclosure auction, online auction, live auction, reo home sales, resale/MLS and for sale by owner. Another good place to find information on foreclosed homes for sale is your state's MLS service(s). There are several MLS services out there. For example, for the State of Georgia, I would go to the Georgia MLS. If I were searching in Georgia for foreclosed homes for sale, I would indicate in the search criteria of the Georgia MLS that I wanted to see all homes for sale in the price range of $3,000 to $25,000. These lower-priced, single family homes are bound to be foreclosures, so I'd simply contact the realtors for some of those listings in my preferred zip code and ask them to send me info on foreclosed homes for sale in my area. Search engines can be your best guide for finding foreclosed homes for sale. Simply go to GOOGLE, or your preferred search engine, and key in "foreclosed homes for sale." You'll be thrown out to several websites listing foreclosed homes for sale. Please do extensive research before you buy. Also, look at several properties before you plunk down your hard earned cash. And, finally, be prepared to put a little elbow grease and money into your newly purchased foreclosure. Companies like Foreclosure Cleanup, LLC, in Atlanta, and tons of other similar companies popping up all over the country, can help you clean, clear, repair and paint your new investment. Happy Searching! Fox411 Exclusive: Justin Timberlake's friends want him back with <b>...</b> His rep released a statement to People magazine telling them these rumors were getting out of control and they were still together. Then his Mother confirmed to E <b>news</b> they were still a couple. Quit making up stories and spreading lies. ... Fox 'not really <b>news</b>,' says Axelrod - Mike Allen - POLITICO.com WH senior adviser says Sunday that the Fox <b>News</b> Channel is "not really a <b>news</b> station." Giving up on the <b>news</b> business « BuzzMachine As too often happens in this discussion, they focus only on the revenue side of the business ledger of <b>news</b> – advertising falling from monopolistic heights – and not on the cost side and the efficiency <b>new</b> technology – and thus ...
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