Viewpoint Real Estate Network On the evening of September 3, Vanke announced its August sales results again after Country Garden.
Viewpoint Real Estate new media consulted the announcement and learned that in August 2021, Vanke achieved a contracted sales area of 2.194 million square meters, a contracted sales amount of 37.03 billion yuan, a year-on-year decrease of 36.94%, and a unit price of 16,900 yuan per square meter.
In the first eight months of 2021, Vanke achieved a total of 27.182 million square meters of contracted sales area, with a contracted sales amount of 443.01 billion yuan, a year-on-year increase of 1.09%, and a unit price of 16,300 yuan per square meter.
From the data, it can be seen that Vanke’s sales in August further declined, and the cumulative sales growth rate in the first eight months slowed down. As if to confirm that at the end of August, when Vanke held its 2021 interim results conference, Zhu Jiusheng, its president and CEO, said “Steady and long-term development is the keynote of Vanke, and stability is Vanke’s current response.”
In terms of new development projects, since the disclosure of the sales briefing in July 2021, Vanke has added 13 new development projects, with a total area of 154.6 square meters, a floor area ratio building area of 348.7 square meters, and a company’s equity building area of 237.7 square meters. The paid land price of equity was 13.667 billion yuan.
According to the announcement, among the 13 projects, Vanke paid the most equity land prices in the three projects in Nanning, Xi’an and Zhongshan, each exceeding 2 billion yuan. Among them, Vanke’s equity land price for the future gate complex project in Zhongshan is 4.095 billion yuan, holding 50% of the equity.
It is understood that the project’s land number is G28-2020-0145, located in East Wuwei, the starting area of Cuiheng New District, Zhongshan. The land is a comprehensive land (including residential), with an area of 669,000 square meters, a floor area ratio of 2.3, and a total construction area of 155.34. 10,000 square meters, with a starting price of 7.88 billion yuan. The final plot was jointly bid by Hefei Vanke Ruixiang Real Estate Co., Ltd. (a subsidiary of Vanke) and Shenye Terra Land Investment Development (Shenzhen) Co., Ltd. The transaction price was 8.19 billion yuan, with a premium rate of 3.94%.
Such a high transaction price directly broke the record of the total transaction price of the Zhongshan land parcel, ranking TOP1 in the total price of the land auction in Zhongshan. But on the other hand, the larger the plot, the greater the resources that need to be invested in development, and the greater the pressure on real estate companies.
The joint land acquisition and development of enterprises can play a role in sharing risks, reducing capital occupation and accelerating capital turnover. Although there may be problems in the distribution of benefits in the follow-up, implementation of this strategy will still have more advantages than disadvantages for Vanke, which emphasizes stability.
In addition to Zhongshan, from mid-August to early September, Vanke’s actions in Shanghai, Guangzhou and Anhui Province were also quite eye-catching.
On August 18, the Shanghai Municipal People’s Government and Vanke signed a strategic cooperation framework agreement. According to the agreement, the two parties will conduct in-depth cooperation in the construction of the flagship project of the “Future City”, the innovative practice of the comprehensive management of the “Property City”, the organic renewal of the city, the development of the housing leasing industry, and the application of construction technology to achieve mutual benefit and win-win results.
Previously, at the end of March last year, Vanke was caught in the Shanghai bid-rigging storm. Affected by this, Vanke will be restricted from acquiring land in the Shanghai open market within three years.
The signing of the cooperation agreement this time may represent a certain degree of “reconciliation” between Vanke and Shanghai. Vanke will tilt towards urban renewal in Shanghai.
Just two days later, on August 20, the Guangzhou Public Resources Exchange announced that Vanke won the bid for the renovation project of the Yangcheng Economic Cooperative Old Village in Liucun Community, Yunpu Street, Huangpu District. According to data, there are 328 legal residential buildings in Yangchenggang Village, with a construction area of about 86,400 square meters, and another historical cultural preservation building. The total investment in demolition and resettlement of the project is about 1.115 billion yuan.
Subsequently, on September 1, Wang Qingxian, Governor of Anhui Province, held a working meeting with Yu Liang, Chairman of the Board of Vanke Group. Wang Qingxian pointed out that it is hoped that Vanke will use its advantages in urban renewal, park construction, and development of the healthcare industry to increase its investment in Anhui. Yu Liang also said that Vanke will fully meet the strategic needs of Anhui’s development and actively integrate into the overall development of the “four modernizations” in northern Anhui and other places.
Vanke’s deepening of the layout in the city may be related to the further tightening of the centralized land supply policy.
In recent days, many places have released the plots and rules for the second round of centralized land supply. Among them, big cities such as Hangzhou, Dongguan and Wuxi have all adjusted the rules of land auction.
For example, the upper limit of the premium rate of the general land in Hangzhou is adjusted from 20% to 15%, and the upper limit of the premium rate of the “competitive quality” pilot land is adjusted from 10% to 5%. After the land reaches the upper limit price, the bidder will be determined by lottery. ; Wuxi City has changed from the previous “land price limit, bidding for self-owned rental housing area” to “land price limit, lottery.” Such changes make it more difficult for real estate companies to obtain land, and they also need to rely on luck to obtain land.
But business operations cannot rely on luck, and changes in the environment naturally drive changes in survival strategies.
Liu Xiao, the chief operating officer of Vanke, also pointed out at the interim results meeting that in the future, whether it is an open market or a merger and acquisition market, or an urban renewal market, including the current strategic cooperation agreement with the government, it will reflect the development trend of urban supply itself on the one hand. On the other hand, it also reflects that Vanke’s investment strategy will continue to change according to changes in cities and policies.
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