Real estate rush to collect sustained cash flow maintained by real estate enterprises in exchange of price and volume

category:Finance
 Real estate rush to collect sustained cash flow maintained by real estate enterprises in exchange of price and volume


However, the cumulative sales volume of most real estate enterprises in the first five months was still lower than that of the same period last year.

Sales receipts are one of the main sources of cash flow for real estate enterprises. The head of a top 20 real estate company told 21st century economic news that although the market has been warming up in recent years, the strength of foreign investment of real estate companies is also increasing, and the cash flow alarm of many enterprises has not been lifted. In addition, the market trend is still uncertain. In the future, increasing sales and protecting cash flow will still be the strategic focus of the enterprise.

In novel coronavirus pneumonia, Hengda has been pushing online sales since February this year and has implemented extensive price concessions. From February to May this year, Evergrandes monthly contract sales were 44.73 billion yuan, 62.1 billion yuan, 65.2 billion yuan and 60.2 billion yuan respectively.

In the first five months of this year, Evergrandes total contract sales amounted to 272.79 billion yuan, an increase of 17.8% year-on-year; the total contract sales area was 30.079 million square meters, an increase of 40% year-on-year.

In the first five months of this year, Vanke achieved a total contract sales area of 15.755 million square meters, with a contract sales amount of 247.11 billion yuan, all down from the same period last year. However, in May, Vankes contract sales amounted to 61.28 billion yuan, up 5.67% year on year.

The above-mentioned real estate enterprises generally achieved sales growth in May, which is closely related to the recovery of the market. Due to the delayed release of demand, the long may day holiday and the decline of mortgage interest rate, the real estate turnover in many cities has increased significantly. Some projects in Hangzhou, Chengdu and Nanjing once witnessed a grand occasion of ten thousand people shaking their names.

At the same time, price concessions are more common among property companies that have issued sales briefs, which is also seen as another reason to stimulate transactions.

In addition to Evergrande, country garden and other top real estate enterprises, jiazhaoyes average selling price in May was about 15005 yuan / m2, down about 22.2% year on year. In the first five months of this year, the average sales price of jiazhaoye fell about 14.8% year on year.

In the first five months of this year, the average contract sales price of Xuhui was about 16600 yuan / square meter, slightly lower than the 16700 yuan / square meter of last year. The average sales price of Zhengrong in the first five months was 15300 yuan / m2, slightly lower than 15500 yuan / m2 of the whole year last year. In addition, the sales prices of Hejing Taifu and Fuli are lower than those at the end of last year.

Analysts generally believe that price concessions will help stimulate sales, but will make the profit margin of real estate enterprises continue to decline. According to wind, in the first quarter of 2020, the overall sales net profit margin of Shenwan real estate sector was 8.73%, down 4.40 percentage points year on year.

But on the whole, the sales gap of real estate enterprises still exists.

Collection promotion is still the first choice

Its not so much about selling, its about collecting money. In recent months, real estate companies have used various ways to stimulate sales, the primary purpose of which is not to achieve sales targets, but to maintain cash flow, said the person.

It is reported that in recent months, the capital chain of real estate enterprises has been generally affected due to sales obstacles. To this end, enterprises generally shrink the scale of investment, and individual real estate enterprises also reduce internal spending through measures such as wage cuts and layoffs. Since April, the market has gradually warmed up, but due to the large sales gap in the early stage, the enterprises capital chain alarm has not been completely lifted.

According to the data of the National Bureau of statistics, from January to April this year, the funds in place of real estate development enterprises reached 4704 billion yuan, down 10.4% year on year. Among them, deposits, advance payments and personal mortgage loans accounted for more than 40% of the capital sources, down 18.9% and 5.4% respectively.

According to the person of the real estate enterprise mentioned above, his company has set the target of payment collection rate at over 85%, which is a hard target that must be completed. According to the 21st century economic news reporter, at present, most of the real estate enterprises require more than 80% of the collection rate.

In fact, one of the purposes of price reduction sales is to realize the quick receipt of funds. According to 21st century economic report, signing discount, down payment discount and other promotions have been widely used in recent years. The main performance is that the shorter the signing time, the greater the discount; the higher the proportion of down payment, the greater the discount, and the most preferential full payment.

In this period of time, because of the advantage of price, the proportion of full payment on many projects is indeed increasing. The person said.

In May, high-quality plots were launched frequently, which stimulated the rapid warming of the land market. Although the outward investment of real estate enterprises is still cautious, its cash flow pressure is increasing.

Yijukerui pointed out that under the influence of many factors such as warmer market sales, slightly relaxed financing environment and large amount of land supply in hot cities, may became a small peak for real estate enterprises to acquire land, with nearly half of the top 50 real estate enterprises investing more than 5 billion yuan. Among them, country garden, Zhonghai, Shimao, Xuhui and other enterprises, the amount of land acquisition in May is almost the sum of the previous April.

For real estate companies, although the recent market is hot, the opportunity may be fleeting. According to Guosen Securities, the recent increase in sales is driven by both the increase in supply and the filling of the demand gap caused by the epidemic. If the demand side policy environment does not change, the market is still facing a decline in sales.

Source: Chen Hequn, editor in charge of 21st century economic report_ NB12679