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on the evening of august 31, institutions such as china index academy, cric, and e-house research institute announced the sales lists of the top 100 real estate companies in the first eight months of 2024.

according to data from the china index academy, in the first eight months of this year, the total sales of the top 100 real estate developers was 2.68324 trillion yuan, a year-on-year decrease of 38.5% (a year-on-year decrease of 40.1% in the first seven months), and the cumulative year-on-year decline has narrowed for six consecutive months.

as a traditional off-season for sales, the total sales of the top 100 companies in august fell both year-on-year and month-on-month. according to cric statistics, in august, the top 100 real estate developers achieved a sales volume of 251.2 billion yuan, a month-on-month decrease of 10%, and the monthly performance scale continued to remain at a historically low level.

the reporter of daily economic news noted that the top three companies in the industry are still poly developments, china overseas land & investment and greentown china, with sales of 220.8 billion yuan, 180 billion yuan and 165.63 billion yuan respectively in the first eight months. in addition, some typical companies such as power construction real estate, sino-ocean group and china jinmao saw strong sales growth in august.

"with the arrival of the traditional peak season of 'golden september and silver october' in the real estate market, the activity of the new home market in core cities may pick up slightly in the short term, but the sharp reduction in land supply in the early stage may restrict the supply capacity of real estate companies, thereby dragging down the sales recovery. at the same time, long-term factors such as residents' income expectations have not yet shown significant improvement, and the overall new home market is still under pressure." china index academy analyzed.

sales of real estate companies in all camps have declined

according to data from china index academy, in the first eight months of this year, the total sales of the top 100 real estate developers was 2683.24 billion yuan, down 38.5% year-on-year, and the decline continued to narrow by 1.6 percentage points from the previous month. the equity sales of the top 100 real estate developers was 1876.5 billion yuan, and the equity sales area was 102.913 million square meters.

in terms of performance in august, the sales of the top 100 real estate developers decreased by 22.1% year-on-year and 2.43% month-on-month. according to cric statistics, the sales of the top 100 real estate developers in august reached 251.2 billion yuan, a decrease of 10% month-on-month, and the monthly performance scale continued to remain at a historically low level; it decreased by 26.8% year-on-year, and the year-on-year decline further expanded by 7.1 percentage points compared with july.

the reporter noticed that according to data from the china index academy, there were 6 real estate companies whose total sales exceeded 100 billion yuan in the first 8 months, 6 fewer than the same period last year; there were 61 real estate companies whose total sales exceeded 10 billion yuan, 29 fewer than the same period last year.

in the first eight months of this year, sales of real estate developers in all camps declined. among them, the average sales of the top 10 real estate developers was 130.22 billion yuan, a year-on-year decrease of 30.8%; the average sales of the top 11~30 real estate developers was 33.95 billion yuan, a year-on-year decrease of 42.6%; the average sales of the top 31~50 real estate developers was 15.52 billion yuan, a year-on-year decrease of 47.0%; the average sales of the top 51~100 real estate developers was 7.83 billion yuan, a year-on-year decrease of 45.2%.

as of august 30, 2024, more than 100 a-share and h-share real estate companies have released their 2024 interim performance announcements. according to data from china index academy, in the first half of the year, the average operating income of 105 a-share and h-share real estate companies was 11.591 billion yuan, a year-on-year decrease of 13.00%; the average net profit was 145 million yuan, a year-on-year decrease of 82.05%.

in terms of profitability, in the first half of the year, a total of 72 real estate companies saw a year-on-year decline in revenue; the net profit of 87 real estate companies declined year-on-year, of which 50 companies suffered losses, and 24 companies suffered losses for the first time since the epidemic.

"the widespread existence of 'trading price for volume' has become an important reason for the significant decline in net profits of listed real estate companies and the continued weakening of profitability." china index academy believes that on the other hand, the market competition brought about by the contraction of demand has further intensified, resulting in insufficient growth momentum for the scale of revenue of real estate companies and pressure on profit levels. at the same time, real estate companies continue to make provisions for impairment of investment properties and inventories, which has also eroded the industry's profit level to a certain extent.

the overall market is still under pressure in the "golden september and silver october"

affected by the high temperature weather and the gradual weakening effect of the real estate stimulus policies, the overall performance of the real estate markets in key cities continued to decline in august.

statistics from china index academy show that new home sales in key cities fell by about 20% year-on-year in august, and the decline has widened. the second-hand housing market continued the trend of "trading price for volume", with the transaction volume of second-hand homes in core cities falling month-on-month. despite the low base, it still grew year-on-year, but the growth rate narrowed.

cric data also showed that the new home market in august continued the weak supply and demand trend in july, with the absolute volume being the second lowest in the year (only slightly higher than february at the beginning of the year): the supply and transaction volume of new homes in the 30 key cities in august decreased by 4% and 12% month-on-month, respectively, and decreased by 38% and 22% year-on-year, respectively, significantly lower than the average monthly performance in the second quarter; the year-on-year decline in new home transaction volume in august widened by 9 percentage points from july; the cumulative transaction volume in the first eight months decreased by 34% year-on-year, and the decline narrowed by 1.24 percentage points from the previous month.

"overall, my country's real estate market is still in a stage of deep adjustment, and the property market will still need continued policy support in the future. under the policy of 'trading price for volume', the second-hand housing market in core cities is expected to maintain a certain level of activity," said china index academy.

however, it is worth noting that some high-end improvement properties in some cities have experienced independent market trends in august. for example, the 110 units of the second phase of the sunac bund one project in the dongjiadu section of huangpu district, shanghai, were sold out within one hour of the launch, with a total transaction amount of 5.674 billion yuan on the same day; on the same day, the yuexiu suhe and yuefu projects also officially announced that all units were sold out after the launch. in addition, the 33 units of the jinyuan project in the yuyuan section of huangpu district were sold out after the launch, with a total transaction amount of 1.827 billion yuan.

as for the future market, cric believes that with the arrival of the traditional marketing peak season, real estate developers will increase both the intensity of launching new projects and the intensity of marketing, and the overall transaction volume in september may increase month-on-month. however, considering the current sluggish market conditions, the increase may be very limited without obvious policy stimulus.

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