On August 3, Zhongnan Construction pointed out on the investor interaction platform that in response to the question raised by investors that “real estate enterprises with an online transmission of new land storage amount exceeding 40% of the total sales will be suspended from taking land. Is this true?” in fact, this is not new news.
Zhongnan Construction said that when the Ministry of housing and urban rural development and the people’s Bank of China issued the fund monitoring and financing management rules for key real estate enterprises last year, in addition to the “three red lines” of concern, whether the amount of land purchase exceeds 40% of the sales amount is an important reference index.
Source: Shenzhen Stock Exchange interactive trading platform
Land acquisition by real estate enterprises has attracted attention
Zhongnan Construction pointed out that the company’s sales amount in the first half of this year was 109 billion yuan, the total land price of new projects was less than 29 billion yuan, and the ratio of land price to sales amount was less than 27%. There was still a lot of room for the company’s investment amount to meet the policy requirements.
Previously, a head real estate enterprise disclosed to the reporter of China Securities Journal that the 40% land acquisition restriction mainly refers to the proportion of the amount of land acquisition in equity sales“ The proportion of equity land acquisition amount in equity sales is relatively large compared with the proportion of full caliber land acquisition and sales. But even so, the overall acquisition of land by real estate enterprises will be greatly limited. ”
It is worth noting that in order to alleviate the land acquisition pressure of real estate enterprises, reduce the heat of hot land grabbing and improve the construction quality of developers, some regions have adjusted the land acquisition rules in the early stage.
For example, the announcement on the second batch of centralized transfer of residential land issued by Hangzhou recently shows that in order to further “stabilize land price, house price and expectation” and promote the healthy and stable development of the real estate market, the bidding rules of the second batch of centralized transfer plots have been appropriately adjusted: first, bidders need to pay 20% of the bidding deposit before participating in the bidding; Second, the upper limit of premium rate is adjusted from 30% to 20%, of which the upper limit of premium rate of “competitive quality” pilot plot is 10%; Third, after the transfer plot reaches the upper limit price, the original “competitive self-supporting housing” is changed to “competitive free transfer of policy rental housing”. In addition, the centralized transfer launched the “competitive quality” pilot plot in Shicheng district for the first time, and adopted the two-stage operation mode of one-time announcement, offline “competitive quality” and online “competitive land price”, so as to guide the real estate market to supply high-quality residential products from the source.
Real estate enterprises actively seek balance
From the semi annual performance forecast, in order to achieve the performance “breakthrough”, many real estate enterprises mentioned in the semi annual performance forecast that they should continue to strengthen the coordination of node objectives and resource guarantee, and comprehensively improve the project turnover.
Taking Shenzhen property a as an example, the company expects to achieve a net profit attributable to shareholders of listed companies of RMB 676 million in the first half of 2021, with a year-on-year increase of 218.91%. The main reason for the performance change is that during the reporting period, the company’s real estate sector continued to strengthen the coordination of node objectives and resource guarantee, so as to realize the overall accelerated turnover of projects under construction. It is expected that the total settlement income of various projects in the first half of the year will increase significantly over the same period of the previous year, and the gross profit margin of settlement projects will increase over the same period of the previous year.
According to the Research Report of capital securities, the current policy concerns of the real estate industry remain, and the sector valuation and mainstream real estate stocks are the lowest in the whole year. It is believed that the continuous deviation from the industry fundamentals and valuation will be improved, and it is optimistic about the valuation repair market of the real estate industry under the background of the stabilization of policies and fundamentals in the whole year. Recommend real estate enterprises with high-quality land resources, companies with improved performance and healthy financial indicators, and real estate enterprises with advantages in operation ability, cost control ability, financing ability and non market land acquisition ability.
Reprint indicated source：Spark Global Limited information