Discount Sales Increase Cost &Nbsp; Part Of Developers Gross Profit Margin Decline.

Diminished profitability

Data show that since the second half of 2011, real estate enterprises

Of the 23 listed real estate companies that have disclosed the 2011 Annual Report, nearly 60% of them have gross margins in 2011.

Although most of the housing companies still maintained two digit revenue growth in 2011, they were restricted to purchase.

From the national situation, after the three quarter of last year, in order to promote project sales, many housing enterprises began to carry out various discount promotions, and the discount tide continued to expand in the industry.

At the same time, the phenomenon of rising prices everywhere has been curbed, and the number of cities loosening and falling is increasing.

By January 2012, the price of newly built commercial housing in 70 large and medium-sized cities across the country had not risen, and all of them fell or remained flat.

Fees rose sharply

Statistics show that the 23 real estate listed companies that have published annual reports in 2011 totaled 10 billion 123 million yuan in total of three expenses, an increase of 37.27% over the same period last year.

Among them, the sales expenses increased by 37.63% compared with the same period last year, the management cost increased by 45.2%, and the financial expenses increased by 9.24% compared with the same period last year.

Under normal circumstances, enterprises in the process of expanding production capacity and opening up the market will increase the cost of sales.

Especially when the market environment changes, the expenditure of enterprises in marketing and advertising will also increase correspondingly. This is especially evident in Real Estate Company.

Vanke's brand promotion fee in 2011 reached 899 million yuan, an increase of 31.71% over the same period last year.

The sales cost of Yicheng shares increased by 54.55% over the same period last year. The company said it was mainly due to the increase in sales and sales promotion expenses in 2011.

Chongqing Development (000514) a substantial increase in advertising costs has also led to a rise in sales costs.

Insiders pointed out that when the external environment changes, enterprises are more inclined to achieve cost reduction through cost control. In the future, housing enterprises will also intensify their efforts in cost control.