Welcome!

News Feed Item

Urbanization Benefits China's Developers, Merrill Lynch Raises Evergrande's Target Price

BEIJING, Jan. 9, 2013 /PRNewswire/ -- After the 18th CPC National Congress convened, the media attached great importance to new urban construction, an issue that concerned the public after it was listed in the national strategic plan. Due to such policy, China's real estate industry will step back from its "Golden Times" after years of fast development and several rounds of strict government controls, which will bring brand-new opportunities for development.

It is widely believed that the "Golden Times" for China's real estate industry have come to an end due to the monetization reform of housing, demographic dividends, fast GDP growth, and loose monetary policy. However, along with the implementation and continuous promotion of new urbanization policies, the demands for housing inventory will expand greatly, and the largest rigid demand in history is expected to awaken, so that the real estate industry may enter another boom period, namely the "10-Year Silver Times".

As the data listed in the Development Trend of China's Real Estate Market in the Next Ten Years (2011-2020) released by China Index Academy showed, in the next 10 years, China's urbanization ratio will on average rise by 1.1% per year, and people will need another 15.7 billion square meters for living, 8.19 billion of which will be needed by first-time buyers, accounting for 52%.

In addition, Haitong Securities released a report showing that from 2012 to 2021, another 592 million square meters of living space will be added to housing demand because of urbanization, which is equivalent to 61% of sales volume for commodity houses in 2011.

Third-tier cities will become the market with the most potential. As a report released by First Capital showed, second- and third-tier cities in central and western China and third-tier cities surrounding the first-tier cities will benefit from urbanization.

According to the recent situation of housing sales, some buyers with rigid demand for improved housing have already actively purchased houses in several third-tier cities, and many developers have also begun to arrange their development plans in second- and third-tier cities, showing that the real estate market is recovering. Zhang Minhua, Director of the Department of Investment Strategy & Research of the Global Personal Banking Service Division of Citibank, forecasts that the real estate market within China will remain stable with a growth of 9%, and the stocks of leading real estate enterprises may even rise 20%. In addition, Moody's also has revised its prospects for China's real estate industry from "negative" to "stable", and even predicts that the sales status and financing channels will continue to be better in 2013.

Of course, the real estate enterprises that have already arranged development plans in second- and third-tier cities will benefit most from the new urbanization. As data showed, Evergrande Real Estate Group, a leading real estate enterprises within China, gained RMB 92.32 billion RMB from sales in 2012, up 14.8% year-on-year, and its annual sales targets have again outperformed ahead of schedule, with a fulfillment rate of 115.4%. It is estimated that Evergrande's performance will improve in 2013, for most of its projects are located in third-tier cities, and its land reserve is sufficient. Furthermore, Merrill Lynch recently predicted that the sales volume of Evergrande in 2013 will amount to 110 billion RMB, up 20%. Therefore, Merrill Lynch has maintained its "Buy" rating on Evergrande and raised its target price from HKD$4 to HKD$5.75.

SOURCE Sina Leju

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
SYS-CON Events announced today that Tintri, Inc, a leading provider of enterprise cloud infrastructure, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Tintri offers an enterprise cloud platform built with public cloud-like web services and RESTful APIs. Organizations use Tintri all-flash storage with scale-out and automation as a foundation for their own clouds – to build agile development environments...
SYS-CON Events announced today that DivvyCloud will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. DivvyCloud software enables organizations to achieve their cloud computing goals by simplifying and automating security, compliance and cost optimization of public and private cloud infrastructure. Using DivvyCloud, customers can leverage programmatic Bots to identify and remediate common cloud problems in rea...
SYS-CON Events announced today that Carbonite will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Carbonite protects your entire IT footprint with the right level of protection for each workload, ensuring lower costs and dependable solutions with DoubleTake and Evault.
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
SYS-CON Events announced today that Tappest will exhibit MooseFS at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. MooseFS is a breakthrough concept in the storage industry. It allows you to secure stored data with either duplication or erasure coding using any server. The newest – 4.0 version of the software enables users to maintain the redundancy level with even 50% less hard drive space required. The software func...
SYS-CON Events announced today that EARP will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "We are a software house, so we perfectly understand challenges that other software houses face in their projects. We can augment a team, that will work with the same standards and processes as our partners' internal teams. Our teams will deliver the same quality within the required time and budget just as our partn...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
DevOps at Cloud Expo – being held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real r...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory?
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...