Real Estate "Rush To Tide Over The Tide" Sustained Housing Prices To Exchange Cash To Maintain Cash Flow

The gap in the real estate capital chain is being filled.

Recently, listed housing companies have released their sales performance in May 2020. With the gradual weakening of the impact of the new crown pneumonia epidemic, housing sales in May continued to climb, even more than the same period last year. In this process, the phenomenon of price change is more common, which highlights that housing enterprises have made active adjustment to promote sales.

The sales volume of Vanke, Hengda and Biguiyuan are higher than those of the same period last year. Among them, Hengda has been expanding its sales scale for 60 billion consecutive three months. But Hengda's profit margin is not small. In the first half of May this year, Hengda's average selling price was 9069 yuan / square meter, down 15.6% compared with the same period last year.

However, the sales volume of most housing companies before May was still lower than that of the same period last year.

Sales return is one of the main sources of cash flow for housing companies. A 20 strong housing enterprise official told the twenty-first Century economic report reporter that although the market has warmed up for some time, the intensity of foreign investment in housing enterprises is also increasing. Many enterprises' cash flow alerts have not been lifted. In addition, the market trend is still uncertain. In the future, increasing sales and guarding cash flow will remain the strategic focus of enterprises.

Sacrifice profit rate

In order to hedge against the impact of the new crown pneumonia epidemic, Hengda has vigorously promoted online sales since February this year, and has implemented a wide range of price concessions. From February to May this year, Hengda's monthly sales contracts were 44 billion 730 million yuan, 62 billion 100 million yuan, 65 billion 200 million yuan, and 60 billion 200 million yuan respectively.

In May of this year, the sales volume of Hengda accumulative contract was 272 billion 790 million yuan, an increase of about 17.8% compared with the same period last year, and the total sales contract area was 30 million 79 thousand square meters, an increase of 40% over the same period last year.

In May of this year, Vanke achieved a total contract sales area of 15 million 755 thousand square meters, and the contract sales amount was 247 billion 110 million yuan, all down compared with the same period last year. But in May, the sales volume of Vanke's contract was 61 billion 280 million yuan, up 5.67% over the same period last year.

In the 1-5 months of this year, Biguiyuan realized 205 billion 990 million yuan in sales of equity contracts, down 7.03% from the same period last year. But in May, the monthly sales volume was 56 billion 110 million yuan, an increase of 3.29% over the same period last year.

The above housing enterprises generally realized sales growth in May, which is inseparable from the market recovery. Due to the delay in the demand for the release of the epidemic, the May 1 long holiday and the decline in mortgage interest rates, the volume of real estate transactions in many cities has been warming up. Some of the projects in Hangzhou, Chengdu and Nanjing have seen the grand occasion of "ten thousand people Yaohao".

At the same time, price concessions have been more common among housing companies who have issued sales briefs, which is also considered another reason for stimulating transactions.

In addition to Hengda and Biguiyuan, the average selling price of Jia Zhao in May was about 15005 yuan per square meter, down 22.2% from the same period last year. In the first half of May this year, the average selling price of Jia Zhao industry decreased by about 14.8%.

In May of this year, the average selling price of Xu Hui's contract sales was about 16600 yuan / square meter, slightly lower than that of last year's 16700 yuan / square meter. In May, the average selling price of Zheng Rong was 15300 yuan / square meter, slightly lower than that of last year's 15500 yuan / square meter. In addition, the sales prices of Jing Jing Tai Fu and Fuli were lower than those at the end of last year.

Analysts generally believe that price concessions will help stimulate sales, but the profit margins of housing companies will continue to decline. Wind statistics show that the first quarter of 2020, Shen Wan real estate plate overall sales net profit margin of 8.73%, down 4.40 percentage points year-on-year.

But overall, the sales gap of housing companies still exists.

The statistics of Yi Ju Ke Rui show that in May this year, TOP100 Housing enterprises realized sales volume (full bore) of 1 trillion and 91 billion 540 million yuan per month, a 21.3% increase of the ring, an increase of 12.2% over the same period last year. But accumulatively, in 2020 1-5 months, the sales scale of TOP100 Housing enterprises was still 7.9% lower than that of the same period last year.

Payment is still the first choice.

"Rather than grasping sales, it's better to get money back." Housing prices in the past said that in recent months, housing enterprises in various ways to stimulate sales, the primary purpose is not to achieve sales targets, but to maintain cash flow.

It is reported that in recent months due to sales blocked, housing enterprises' capital chain is generally affected. To this end, enterprises generally shrink the scale of investment, and individual housing companies also reduce internal expenses through measures such as pay cuts and layoffs. Since April, the market has been heating up gradually. However, due to the large sales gap in the previous period, the alarm of the chain of funds has not yet been completely lifted.

According to the statistics of the National Bureau of statistics, 1-4 months of this year, the real estate development enterprises reached 47004 yuan, which was 10.4% lower than the same period last year. Among them, two of the earnest money and advance payment and personal mortgage loans, which account for more than 40% of the source of funds, decreased by 18.9% and 5.4% respectively.

The housing companies said that the company's target rate would be more than 85%, and it must be completed as a "hard target". According to the twenty-first Century economic report reporter, at present, most of the housing enterprises demand for repayment rate of more than 80%.

In fact, one of the purposes of reducing sales is to realize quick arrival of funds. According to the twenty-first Century economic report, promotions such as "contract offer" and "down payment" were widely used in the near future. The main performance is that the shorter the time of signing the contract, the greater the discount intensity; the higher the first payment ratio, the greater the discount intensity, and the most preferential payment for the whole payment.

"During this period, because of the advantage of price, the proportion of total payment in many projects is indeed increasing." The source said.

In May, high quality plots were launched frequently, stimulating the land market to rise rapidly. Although foreign investment in housing companies is still cautious, its cash flow pressure is increasing.

Yi Ju Ke Rui pointed out that in the market sales warming, a slightly relaxed financing environment, hot urban land supply volume and other factors, May has become the small peak of housing prices, and nearly half of TOP50 housing prices invested more than 5 billion yuan. Among them, Biguiyuan, Zhonghai, Shi Mao, Xu Hui and other enterprises, the amount taken in May is almost the same amount in April.

"Investment intensity is gradually increasing." Yi Ju Ke Rui believes that "in order to ensure the safety of funds, sales and money recovery, to make up for sales vacancies is still the first choice for housing enterprises in the next two quarters."

For housing prices, the recent market is hot, but the opportunity may be fleeting. Guoxin Securities believes that the recent increase in sales is driven by an increase in supply and a demand gap to fill the epidemic. If demand side policy environment does not change, the market is still facing the sale "downhill".

The agency said that sales in April and May did improve significantly, but this did not change the direction of the downward sales cycle. It is estimated that the sales volume of the national commercial housing will still decrease by 10% this year.

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