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
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
"This is specifically designed to accommodate some of the needs for high availability and failover in a network managed system for the major Korean corporations," stated Thomas Masters, Managing Director at InfranicsUSA, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Infrastructure is widely available, but who’s managing inbound/outbound traffic? Data is created, stored, and managed online – who is protecting it and how? In his session at 19th Cloud Expo, Jaeson Yoo, SVP of Business Development at Penta Security Systems Inc., discussed how to keep any and all infrastructure clean, safe, and efficient by monitoring and filtering all malicious HTTP/HTTPS traffic at the OSI Layer 7. Stop attacks and web intruders before they can enter your network.
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Regulatory requirements exist to promote the controlled sharing of information, while protecting the privacy and/or security of the information. Regulations for each type of information have their own set of rules, policies, and guidelines. Cloud Service Providers (CSP) are faced with increasing demand for services at decreasing prices. Demonstrating and maintaining compliance with regulations is a nontrivial task and doing so against numerous sets of regulatory requirements can be daunting task...
Get deep visibility into the performance of your databases and expert advice for performance optimization and tuning. You can't get application performance without database performance. Give everyone on the team a comprehensive view of how every aspect of the system affects performance across SQL database operations, host server and OS, virtualization resources and storage I/O. Quickly find bottlenecks and troubleshoot complex problems.
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, provided an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data professionals...
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2017 New York The 7th Internet of @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, New York. Chris Matthieu is the co-founder and CTO of Octoblu, a revolutionary real-time IoT platform recently acquired by Citrix. Octoblu connects things, systems, people and clouds to a global mesh network allowing users to automate and control design flo...
You are moving to the Cloud. The question is not if, it’s when. Now that your competitors are in the cloud and lapping you, your “when” better hurry up and get here. But saying and doing are two different things. In his session at @DevOpsSummit at 18th Cloud Expo, Robert Reeves, CTO of Datical, explained how DevOps can be your onramp to the cloud. By adopting simple, platform independent DevOps strategies, you can accelerate your move to the cloud. Spoiler Alert: He also makes sure you don’t...
President Obama recently announced the launch of a new national awareness campaign to "encourage more Americans to move beyond passwords – adding an extra layer of security like a fingerprint or codes sent to your cellphone." The shift from single passwords to multi-factor authentication couldn’t be timelier or more strategic. This session will focus on why passwords alone are no longer effective, and why the time to act is now. In his session at 19th Cloud Expo, Chris Webber, security strateg...
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.