Selling The Same as Selling Cabbage Housing: Part 1

Real estate development in the chain, Country Garden personally played almost all industries on the downstream all the roles. To ensure that the group can develop long-term chain earned a profit in each.

Planners Country Garden Wang Zhigang said that the successful experience, Country Garden lies in the characteristics of low-cost, fast. Guangzhou Country Garden operating characteristics of the two undoubtedly play to the extreme, and return unexpectedly to an unprecedented level. Country Garden almost the same rapid expansion mode, and provides a market expected to more than 60 billion yuan in real estate empire.

Profit from land revaluation

Land prices are low, Country Garden Group has always been proud of the competitive advantage. There has not been confirmed rumors that the community, Country Garden Group in Guangzhou Zengcheng projects Phoenix a land premium to the low per mu 30,000 yuan, and South China Country Garden is the premium per mu 68,000 yuan. At yesterday's announcement of Country Garden in their prospectuses, the group will once again the advantages of its land to be reiterated: "We have the largest Chinese low-cost land bank and the real estate developer one of these reserves for our future growth and profitability has provided strong support. "

Current Country Garden Group of land is abundant reserves, as at January 31, 2007, the Group has made land-use warrants land reserve of about 18 million square meters, according to the current rate of development for the next five years or more time development needs. In addition, there are 5.5 million square meters of land have signed a land transfer agreement, the land is being used for warrants. These land acquisition, have a common characteristic, that is, the lower premium. Country Garden revealed that the syndicate by the cost of land development projects, lower than the 2006 housing an average price of 10%. "Compared to other Hong Kong-listed mainland real estate developers with low-cost land bank."

According to industry practice, the cost of land is often the most important real estate development enterprises constitute the cost. In the past land is through open channels strokes linked to shoot before the development of large enterprises in Guangzhou some of the costs of land about 20 percent, while in a public land transfer, land costs tend to occupy the entire development costs of 30% to 40%. The last two years, sold some of the Guangzhou urban residential plots, the land cost even to the total cost of 50%. Therefore, the cost can be controlled land in the total cost of 10% within the Country Garden, its competitive advantage is self-evident. Hence the Guangzhou developers joked: Country Garden is not accurate "builders", as a "land sales" more appropriate way to make money is because of its "retail land."

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Selling The Same as Selling Cabbage Housing: Part 1
Selling The Same as Selling Cabbage Housing: Part 2