Huarun Shanghai Has Increased Its Price By 4 Times &Nbsp In 5 Years; A Small Number Of Lots Of Push Plates.

In March 11, 2010, China's land market magazine reported that Beijing, Shanghai 18 idle land in 9 provinces (cities) were disposed of, including Huarun's Mentougou. Earth King 300 million yuan fined. In 2010 alone, Huarun land was exposed 3 times due to idle land. Huarun did not seem to learn from it. Reporters found that Huarun still had lots of land left idle in Hangzhou and Wuhan.

Why does Huarun touch repeatedly? supervise Red thread? The data released by the company's 2010 performance report may explain why. Last year, Huarun's gross domestic product jumped to HK $10 billion 152 million from HK $5 billion 976 million in the previous year. The gross margin of gross domestic product rose from 34.1% in the previous year to 39.4% last year, which is more than 3 times its gross profit in 2004.

The growth of Huarun's gross domestic product is not only due to idle land, but also by the reporter's investigation of the sale of Huarun in Shanghai and Beijing, compared with the same scale projects in the same area, Huarun's sales speed is obviously slow.

The flagship property of Shanghai Huarun land is Shanghai garden, which is Huarun's "bone ash" estate. As early as 2004, the first phase of Shanghai garden started construction, and completed the two phase (the Bund nine Li court) relocation work in 2006.

But as of now, the first phase of the Shanghai garden still has 1900 square meters not sold, the two phase has more than 13000 square meters of available area, and 60 thousand square meters of construction area is not listed for sale.

2005 annual report shows that the price of Shanghai garden is only 18458 yuan / square meter, and the 2010 performance announcement shows that the average selling price of Shanghai garden has reached 96325 yuan / square meter. In the 5 year sales cycle, the price of Shanghai garden has increased 4 times.

Similarly, there is another high-end project in Huarun, Shanghai, Huarun Oak Bay. The reference price range of a number of apartments sold recently has been raised to 61900 to 73000 yuan, which is nearly 3 times the online reference price of 23000 yuan / square meter at the beginning of 2008. While the project stipulates that the 70% units of the development housing must be less than 90 square meters when the land is sold, but at present, the large apartment with 100 square meters or more sold by the project has accounted for more than 40% of the total planning and development volume, and there is also a "flexible" phenomenon that combines two sets of small apartments into large ones.

The sales rate is comparable to that of Tomson.

As early as 2004, Shanghai garden has been the main development project of Huarun land in the Huarun annual report. The sales area of the first phase is 85998 square meters, and the sales area of the two phase is as high as 102364 square meters, with a total construction area of 189 thousand and 700 square meters. At that time, the expected completion date of the one or two phase project was in 2007.

However, Huarun's 2010 sales bulletin shows that in the past 6 years, Shanghai garden only developed 103 thousand and 700 square meters, averaging only 17 thousand and 300 square meters per year, and last year sold only 5287 square meters.

Fang Fang's sales data monitoring of Shanghai garden shows that the total sales volume of the first phase of Shanghai garden in 2005 was only 16.7% of the total project planning area. In the 66 month sales period, there were 38 months sales figures in single figures, and some months or even zero. Even in the hottest July 2009, August and October of the Shanghai property market, and last year's most popular sales in August, September, December and December this year, Shanghai garden's sales volume has only been maintained in single digits.

Online real estate shows that this sales speed is obviously slower than other similar projects of the same size and size. For example, the the Bund garden, which has 66 thousand square meters of residential area, opened for the first time in 2004, and sold nearly 60% of the total residential development area in November and December. The remaining ones were sold out in less than a year after 2007 was launched again, and the same district property opened in June 2005 - Changfeng Xin Yuan, although there are still 52 apartments not sold yet, but the number of sales sold at 2005 opening has reached more than 25% of the total number of residences in the real estate market.

The slow speed of sales has much to do with the development and sales strategy of small and multiple batches in Shanghai garden.

The total development area of nearly more than 80 thousand square meters of gold the Bund garden has only received two pre-sale permits, of which the first time in 2004 to receive pre-sale permits, the pre-sale area accounted for the majority of the entire project; the total construction area of 80 thousand square meters of Changfeng Xinyuan only received the pre-sale permit in 2005 and 2008 two times, the first application for pre-sale area reached more than 70 thousand square meters.

The number of applications for pre sale licences in the first phase of the Shanghai garden phase is up to 6 times. In addition to the first sales opening in 2005, the area of the sales application is close to 30 thousand square meters, and the rest of the sales area is less than 30 thousand square meters. In March 2007, the number of residential areas applied for sales was only 10000 square meters, with a total of only 77 sets.

According to the statistics of China Fang Xin, similar to Shanghai garden, the sales cycle is long, and the number of sales stops in single digit or zero sale month in many months is only a few high-end buildings such as Tomson Yi and Shanghai purple garden.

Slow sales bring high profits

Shanghai garden choose a small number of lots of sales strategy, what are the benefits for developers? From the reference price change of Shanghai online real estate, we can see the mystery behind it.

The online reference price of Shanghai Garden opened at 19000~20500 yuan / square meter. When the new housing source was launched in July 2007, the online reference price has changed to 30000 yuan / square meter. Even in the winter of the property market in 2008, the online reference price of Shanghai garden villa is still as high as 40000~60000 yuan / square meter.

According to Huarun's 2005 annual report and 2010 results announcement, it can be found that the price of Shanghai garden has been increasing momentum in the past few years - the average selling price of Shanghai garden in 2005 is 18458 yuan / square meter, while the average selling price in 2010 is 96325 yuan / square meter.

It is more than Shanghai garden that a small number of lots are opened and the price is increased step by step. Huarun's Huarun Oak Bay also uses this method.

In July 2009, the price of apartments in Huarun Oak Bay was only 23000/ square meters, and by November 2009, the online reference price had risen to 30000 yuan / square meter, and the villa of Lian court was from 38000 yuan / square meter a year ago to 63000 yuan / square meter. The reference price range of a number of apartments sold recently has been raised to 61900~73000 yuan, which is about 3 times that of the online reference price of 23000 yuan per square meter in 2008.

In September 2009, in order to standardize the market, the Shanghai housing security and Housing Authority launched the Provisional Regulations on the record management of commercial housing sales in Shanghai, and banned the price increase in disguised form in a small number of lots. In 2010, Huarun Oak Bay also made use of online real estate to allow developers to adjust the price 20% upward. In January 2010, the price was adjusted 3 times in January 2010, and the reference price of 30000 yuan / square meter just set in November 2009 was continuously raised 3 times to 38000 yuan / square meter, and then again in April, the price was adjusted to 44000 yuan / square meter.

Compared with Shanghai garden, Huarun Oak Bay Sales speed is obviously faster. According to Huarun's 2010 results announcement, a total of 230 thousand square meters of Huarun Oak Bay has sold 85 thousand square meters, but compared with the surrounding property, this sales speed is also relatively slow. Online real estate shows that the New River 1, which started selling 2 years earlier than Huarun Oak Bay, has now sold 268 thousand square meters, accounting for more than 80% of the total planning area.

Had taken the lead in accommodating the 90/70 policy.

The 90/70 policy promulgated by the Ministry of construction in June 1, 2006 stipulates that the proportion of housing area under 90 square meters of construction area must reach more than 70% of the total area of development and construction.

But as of yesterday, Huarun Oak Bay has launched about 130000 square meters of residential housing, more than 100 square meters of large apartment housing area of 97 thousand and 200 square meters, accounting for 73.21% of the total housing, 42% of the total planning and development volume, has broken through the original 90/70 family planning restrictions.

Shanghai real estate in twenty-first Century, the manager of Ruifeng new Bay City store told reporters that in twenty-first Century, 90 square meters of small apartments were launched in 2008 and 2009. There was another more than 70 square meters and more than 80 square meters of two housing units that were merged into more than 150 square meters of "special housing three rooms".

Huarun's policy to break through the 90/70 policy is a precedent in the new city. Later in the real estate development and sales of the region, most of the real estate projects were launched with large residential units of more than 100 square meters, and small and medium-sized apartments within 90 square meters were rarely developed.

Reporters have e-mail, fax Huarun land Shanghai related departments and responsible person, as well as group headquarters brand director, asked Oak Bay above problems, but as of press release, Huarun has not replied.