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Glorious Property
Annual Report 2011
property market, aiming at cracking down on investments and speculations so as to stabilise the
property price. The “Home Purchase Restriction” was put into effect over 40 cities nationwide
and some cities also had price limitation enforced at the same time. With the influence of
purchase restriction, loan limitation and price limitation, the real estate market and property
price expectations of consumers experienced considerable changes and consumers adopted
a strong wait and see approach. Over the second half of 2011, the transaction volume of the
property market in major cities marked a drastic drop. The property price began its adjustment
and the market conditions deteriorated, bringing many arduous challenges to the property
developers.
During the year, the Group braced up for the challenges and formulated market-oriented
pricing strategy with flexible and effective promotion policies, hastened the launch of the
existing and new projects, resulting in a better sales result compared with that of 2010.
PROPERTY SALES
In 2011, property sales of the Group realised a breakthrough and achieved a record high once
again. The property sales amounted to RMB13,322.0 million, representing a YOY increase of
5.1%. The GFA sold amounted to 1.56 million sq.m., representing a YOY increase of 36.4%.
During the year, the Group realised property sales in 10 cities, in which a higher proportion of
such were attributable to second- and third-tier cities as compared to that of 2010. They made
up 63.9% and 83.4% of the total sales and sales area respectively.
LAND BANK
During the year, the Group acquired two premium land parcels in Dalian and Nantong, with a
total area available for development at 732,859 sq.m. and an average land cost of RMB1,358
per sq.m.. These two projects are of large scale and located in prime locations with relatively
low costs, thus are expected to bring a value-enhancement to the Group.
As at the end of 2011, the Group had a total land bank of 17.9 million sq.m.. The low-cost
and high-quality land bank is situated in 12 cities within four major regions in China, with an
average land cost of RMB1,338 per sq.m., which can continue to provide higher gross margins
and steady growth for the Group.
NATIONWIDE GROWTH STRATEGY
During the year, the Group’s regional strategy kept optimising. The property sales from
Shanghai Region, Yangtze River Delta, Pan Bohai Rim and Northeast China accounted for
27.9%, 29.8%, 10.3% and 32.0% respectively in 2011. The Group successfully tapped
the major markets in Northeast China in recent years and secured a good result. In 2011,
the property sales in Northeast China has achieved a fast growth with total sales reaching
RMB4,267.7 million, representing a YOY increase of 103.4% and area sold 0.70 million
sq.m., representing a YOY increase of 133.2%. For Shanghai Region, total sales and area
sold recorded a proportional decrease from 45.1% and 21.1% in 2010 to 27.9% and 10.3%
respectively in 2011. The proportion of sales amount and area sold in the cities other than
Shanghai Region kept going up to 72.1% and 89.7% respectively. The Group has moved
toward its goal of a balanced development and growth among first-, second- and third-tier
cities.