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
In recent years, containers have taken the world by storm. Companies of all sizes and industries have realized the massive benefits of containers, such as unprecedented mobility, higher hardware utilization, and increased flexibility and agility; however, many containers today are non-persistent. Containers without persistence miss out on many benefits, and in many cases simply pass the responsibility of persistence onto other infrastructure, adding additional complexity.
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning inf...
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
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.
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.
Tintri VM-aware storage is the simplest for virtualized applications and cloud. Organizations including GE, Toyota, United Healthcare, NASA and 6 of the Fortune 15 have said "No to LUNs." With Tintri they manage only virtual machines, in a fraction of the footprint and at far lower cost than conventional storage. Tintri offers the choice of all-flash or hybrid-flash platform, converged or stand-alone structure and any hypervisor. Rather than obsess with storage, leaders focus on the business app...
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...
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
Building custom add-ons does not need to be limited to the ideas you see on a marketplace. In his session at 20th Cloud Expo, Sukhbir Dhillon, CEO and founder of Addteq, will go over some adventures they faced in developing integrations using Atlassian SDK and other technologies/platforms and how it has enabled development teams to experiment with newer paradigms like Serverless and newer features of Atlassian SDKs. In this presentation, you will be taken on a journey of Add-On and Integration...
SYS-CON Events announced today that Outlyer, a monitoring service for DevOps and operations teams, 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. Outlyer is a monitoring service for DevOps and Operations teams running Cloud, SaaS, Microservices and IoT deployments. Designed for today's dynamic environments that need beyond cloud-scale monitoring, we make monitoring effortless so you...
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Column Technologies exhibited at SYS-CON's @DevOpsSummit at Cloud Expo, which took place at the Javits Center in New York City, NY, in June 2016. Established in 1998, Column Technologies is a global technology solutions provider with over 400 employees, headquartered in the United States with offices in Canada, India, and the United Kingdom. Column Technologies provides “Best of Breed” technology solutions that automate the key DevOps principals and help our customers meet today’s DevOps and Dig...
@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...
The cloud competition for database hosts is fierce. How do you evaluate a cloud provider for your database platform? In his session at 18th Cloud Expo, Chris Presley, a Solutions Architect at Pythian, gave users a checklist of considerations when choosing a provider. Chris Presley is a Solutions Architect at Pythian. He loves order – making him a premier Microsoft SQL Server expert. Not only has he programmed and administered SQL Server, but he has also shared his expertise and passion with budd...