The sales floor was halved last month. Yuexiu: the year-round standard

The mainland property market “Golden September and Silver 10” is no longer. Yuexiu Real Estate (00123) contract sales in September fell by about 47% year-on-year. The management explained that the price of the Hangzhou project was mainly affected by the price limit of the Hangzhou project, but the confidence to complete the annual 55 billion yuan (RMB, The same sales target. Recently, some developers have also seen price reduction promotions, and Yuexiu has achieved a balance between sales volume and price.

Yuexiu’s contracted sales in September fell 47% year-on-year to about 2.4 billion yuan. In the first nine months, cumulative sales rose 24% year-on-year to about 35.8 billion yuan, completing 65% of the annual sales target. Lin Zhaoyuan, chairman of the board of directors, said that the Hangzhou project had a gap between the government’s price limit and the company’s expected price, which affected the pace of pushing the goods, causing the transaction to decline in September.

If the property market pulls back, it will impact the gross profit margin.

Lin Zhaoyuan said that if the overall price of the mainland property market is reversed, the gross profit margin will inevitably be affected; but if only some city governments limit the price, the company will control the cost accordingly when investing in the land.

Mainland property market sales showed signs of slowing down. Lin Zhaoyuan believes that third- and fourth-tier cities are more sensitive to the market. He said that compared with other large-scale housing enterprises, Yuexiu’s sales scale is only tens of billions of yuan. At the same time, it is mainly located in the Pearl River Delta, the Yangtze River Delta and central Wuhan. The economic base and transaction volume are strong, with rigid demand, and it is believed that it will be affected. It will be smaller.

Limit or moderate relaxation

According to earlier reports from the mainland media, Guangdong Province is planning to cancel the pre-sale system for commercial housing. Lin Zhaoyuan said that the document is only a draft for the Guangdong Provincial Housing Association, and the final implementation may not be large. He believes that the current building sales will delay the cash return of the housing enterprises, housing enterprises with higher liabilities will face greater risks, while the reduction of market inventory will also push up the housing prices, which is not good for the market.

In addition, the mainland government has recently announced plans to levy a property tax. Lin Zhaoyuan believes that the government will definitely introduce a long-term mechanism, but the main purpose is not to “suppress” the market, but to “stable” the market, and the impact on the market needs to be reassessed. He pointed out that judging from the current macro environment, some policies, such as price limits, may be moderately relaxed. I believe that the final government administrative regulation will gradually return to the market and be selected by the market.