Corner Overtaking Opportunities? Housing Companies Take The Land And Find Money.

The real estate market has been hit by the "pause button" because of the epidemic. With the gradual opening of the sales center in some cities such as Nanjing, Chengdu and Hangzhou, the property market is ready for a "cold start".

Although property transactions and construction projects were frozen during the epidemic, the action taken by the housing companies did not stop. In twenty-first Century, the economic news reporters sorted out the information of recent housing prices. From January to February 21st this year, the industry TOP10 Housing enterprises invested more than 75 billion yuan. Since February, Biguiyuan, Zhonghai, Baoli, Xincheng holdings and so on have taken more than 22 billion yuan.

This round of "bail out" land for the housing industry is mostly industry giants such as Huarun, poly, in 2019 sales of 100 billion yuan -2000 billion of Jinke, Greentown, Xu Hui, Baolong and so on. At the same time, many housing enterprises in financing around to find money "save themselves", although many local governments in the policy on the sale of real estate to relax, but the financing side still no support policy. Since February, a number of Housing enterprises have carried out short-term financing and securities lending to cope with the short-term funding shortage caused by the epidemic.

Although property transactions and construction were frozen during the epidemic, the action taken by the housing companies did not stop. Gan Jun photo

In the adverse market, we should "copy the bottom".

What are the housing prices in the epidemic situation? According to recent information, the central enterprises and the sales scale in the industry are in the climbs and have the financing ability of Housing enterprises, which is the main force in this round. Strong second and second tier cities are still keen on layout of Housing enterprises.

In February 3rd, Dahua Group won the Hangzhou Hangzhou Qian Tang plot at a total price of 1 billion 349 million yuan, with a premium rate of 17.41%; the Zhongan group won 1 homestead in Zhejiang Hangzhou Fuyang district at a total price of 998 million yuan, with a premium rate of 11.14%; the Zhongtian beautiful group consortium earned 413 million yuan in Zhejiang Jinyang for a total price of 413 million yuan, with a premium rate of 8.68%;

Although some cities have postponed or closed down the land transaction market under the epidemic, online auctions still attract many housing companies to sign up. Take Jiangsu Nantong as an example, at 4 p.m. on February 19th, after 8 hours of fierce fighting, Jinke won 747 million yuan in total price for a commercial and residential place in Nantong Haian, with a premium rate of 42.37%. Prior to February 12th, Jinke won 158 million yuan to win the new East C block of Xu Yun, with a premium rate of 47.7%.

Jinke is the only enterprise that has not moved its headquarters to the first tier cities. Compared with Henan Jianye, Jinke was once known as the "Southwest king" because of its large investment and sales volume in Southwest China. But Jinke has an obvious intention to expand its sales scale. Since 2018, Jinke has taken more efforts. In 2018 and the first three quarters of 2019, the investment amount of Jinke investment was 70 billion yuan and 61 billion 400 million yuan respectively.

There is a green city equal to that of Jinke. Since February, Greentown took place in Beijing and Wenzhou respectively. Among them, Lucheng took three plots in Beijing for 14 billion 400 million yuan, and then took 2 billion 542 million yuan to win a commercial and residential area in Wenzhou. Some people in the industry have evaluated Lucheng's chance to seize the bottom. However, in the freezing market situation, although some local governments have launched flexible policies to cope with the situation, they still need to accumulate funds at this time, and the housing enterprises will face the test of reducing leverage and speeding up capital turnover. Therefore, the industry also pointed out that under the outbreak of the window period, or housing enterprises may turn corners overtaking.

A fact that can not be ignored is that almost all the sales offices in the country have been closed, and the resumption of work and production has just entered the stage of approval. Only a few cities have a chance to return to work. Some cities even press the "pause button" for land auction and auction. On the other hand, the sale of Housing enterprises has little effect, and the main reason is to digest the needs of the old customers. But housing companies have confidence in the short-term economic recovery of the domestic economy.

In February 20th, Lu Xinshe, vice president of green space, told the twenty-first Century economic report that with the trend of the epidemic, the market will gradually recover. The consumption demand, which is suppressed by force majeure, will still be transformed. I believe the government will not let the economy slide. Recently, policies to stimulate land and sell markets have also been relatively large.

In this regard, Zhang Hongwei, chief analyst of the same policy research institute, said that according to the current epidemic situation, the impact of the epidemic on enterprises is mainly concentrated in two or three months, and will be weakened after April. At present, various local governments have promulgated policies for land and sales. If housing prices seize the sales opportunities in the two or three quarter, and actively withdraw funds, they can hedge the performance loss of 2, 3 and April.

Short term financing favored by housing companies

According to a survey result from the Kerri Research Center, the housing enterprises in all sizes believe that the epidemic affects the highest proportion in the end of April; the small scale housing enterprises below 5 billion yuan and the super large scale housing enterprises with more than 300 billion yuan are relatively optimistic. Most of the respondents believe that the epidemic will continue to the end of April, and the central enterprises with more than 30% of the 50 billion -3000 billion yuan are more pessimistic and believe that the epidemic will continue to 6. At the end of the month and beyond.

Since February 12th, Foshan, South China Sea, Chengdu, Hangzhou, Shenyang, Nanjing and other places have issued "conditional opening sales offices". In this regard, Zhang Hongwei believes that the market has begun to enter the "cold start" state. From the end of February to the beginning of March, the sales offices of some cities in China began to open conditionally. Although the market is still in the preheating stage, it has also greatly boosted market confidence.

As a new sales mode, the online sales office, though capable of diversion, has limited overall turnover and low customer conversion rate. A housing company with a sales scale of 200 billion yuan told the twenty-first Century economic report that the turnover since February was equivalent to 20% or 30% in previous years.

At present, the opening of sales offices under the line is not accomplished overnight. In fact, since February 12th, Foshan, South China Sea, Chengdu, Hangzhou, Shenyang and other places have issued "conditional open sales offices". According to the latest circular, Shenyang's sales offices and real estate intermediaries are no longer required for examination and approval. In twenty-first Century, the economic report was informed by multi source sources that the local government also drew up a list of marketable properties while introducing the gradual opening policy of the sales offices. Most of the sales offices of these projects have entered the approval process. A number of housing prices related personages revealed that the sales offices have more work to prepare for opening, and the restrictions are also very strict.

Take the Hangzhou area of a TOP10 housing enterprise as an example. Up to now, the housing enterprises in Hangzhou area are selling 9 projects, and 2 projects have been opened in February 20th, and the rest of the projects are applying for re employment, and it is expected to be reopened before the end of the month. It has been revealed that the company launched the online sales office small program a week ago, so the sales office's reopening after the site visit transaction can not be directly judged as the market reaction. For example, a project in Pujiang, through the online sales office, sold 12 sets in 2 days.

Holding land reserve from housing prices can guarantee the following financing and development. It is not difficult to understand that the housing enterprises take the energy storage in the window period. However, referring to the debt situation of Housing enterprises, lowering the leverage is still the main proposition of Housing enterprises. China Index Research Institute data show that in 2020, the industry debt repayment scale remained high, the superposition of the epidemic brought about a sharp decline in sales, and the pressure of funds intensified. Among them, the total scale of housing bond (including overseas debt) repayments in 2020 was 749 billion 390 million yuan, and the scale of repayment in 2021 would exceed $1 trillion to 1 trillion and 49 billion 620 million yuan (the scale of corporate bonds amounted to 443 billion 880 million yuan, and the scale of overseas debt reached 317 billion 430 million yuan). In 2022, the scale of industrial repayment began to fall, but still amounted to 735 billion yuan.

In order to take the overturn of the epidemic, housing companies need to find a balance between land reserves and capital reserves. At present, there is no policy easing signal in the financing port. The only good thing is that the central government's LPR reduction will play a positive role in stabilizing the economic development, especially in alleviating the financing cost of enterprises, and so will the real estate enterprises.

According to the data provided by Kerri, during the Spring Festival of 2020, 95 typical housing enterprises completed 4 overseas debt issuance, involving less than 10 billion yuan, representing a decrease of 86% over last year.

According to a financial analyst, in the short term, most of the capital institutions (including domestic and foreign capital) have not lost confidence in China's real estate market and investment enthusiasm. At present, agencies are still actively absorbing the stock business, while actively preparing for the industrial development plan after the epidemic has been reduced. Nevertheless, housing companies have launched the issuance of ultra short term financing bonds.

In February 20th, the Binjiang group released the second issue of short-term financing issue disclosure documents of Shanghai Binjiang real estate group 2020 in Shanghai clearing house in February 20th. The prospectus shows that the Binjiang group has registered 3 billion yuan short term financing coupon to return the issuer's debt financing instruments. The issue amount is 900 million yuan and the issue period is 366 days. Prior to January 7th, the Binjiang group issued 900 million yuan ultra short term financing coupon, 366 days, the coupon rate of 4%; in February 18th, Binjiang group issued 1 billion 200 million yuan medium term bills, the period of 3 years, the coupon rate 4%. As of the signing date of the prospectus, the balance of the issuer's debt financing instruments was 12 billion 456 million yuan; in January 17th, Financial Street announced the issuance of 2 billion 900 million yuan ultra short-term financing coupons.

In twenty-first Century, according to public information statistics, according to the public information statistics, this year, the scale of debt issuance by housing enterprises is nearly 40 billion, of which the short-term financing scale is more than 8 billion.

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