Real Estate

China Vanke, the country's largest property developer by market value, said Sunday that it raked in a net profit of 2.96 billion yuan ($433.38 million) in the first three quarters of this year, up 29.9 percent year-on-year.

The company's business revenue in the first three quarters surged 31.1 percent year-on-year to 29.54 billion yuan, it said in the quarterly report to the Shenzhen Stock Exchange.
 

The Shenzhen-based company sold 5.1 million sq m of housing nationwide during the January-September period, up 26.8 percent over the same period last year in terms of total sales space.

The company's housing sales totaled 5.57 million sq m for the whole of 2008, down 9.2 percent year-on-year amid a stagnant property market. Its net profit declined 16.7 percent in 2008 from the previous year.

China's property market has seen price and sale hikes after February this year boosted by rising demand.

In the third quarter, the company posted a net profit of 430 million yuan, more than doubled compared with the same period last year.
 

As the country leaders aimed to overtake USA in 2020, its economy is hijacked, in order to keep the GDP growth ratio(can't lower than 8%), the country let bank loan(4 biggest banks are state-own) flown into Real estate industry. According to Beijing government, the Beijing house price of Oct. 2009 is 40% higher than Jan. 2009. But the income of workers in Beijing is zero growth.

No common people can afford such high price property. This is not the only case in China, the house price in all china cities doubled in 2008 and still going up in 2009. So the net profit of these company like Vanke should be 60% down this year instead of 29.9%.

According to the China Index Academy of data center monitoring, Fuzhou, Xiamen, and the Pearl River Delta region's sales expectations on real estate were dashed in "Golden Sep." . Which has the greatest decline in the number of Guangzhou property market in September, the number of first-hand house transaction turned over that only  4600 units deal in this city which has more than 10 million people, compared with the deals in June of this year (more than 8,000 units), decreased by 42.17%.

The quantitative adjustment of the property market is from July in fact. In July, the volume of property deals in Beijing, Shanghai, Shenzhen and Guangzhou (China's top 4 cities) starts downward. Since August, the domestic real estate market turnover in many cities continued to decline, while prices remain strong upward. According to the China Index Academy of data center monitoring, in the "Golden Sep." , Beijing, Fuzhou and some other major cities came to "price-volume" both drop; subject to its monitoring of 30 key cities, "Silver 10" outlook is unclear.

Housing and Urban-Rural Construction Policy Research Center, Qin Hong, deputy director of the view that the domestic real estate market in the first half of this year's "up feeling" that the growth of the national security policy effects are obvious.

Golden land Group's Chairman Ling Ke, said in the first half of this year, wide credit and low interest rate policy to stimulate investment demand, led to housing prices, land prices push each other up.

At present, many chinese are talking about buying an apartment takes to the hard work of several generations. They are also curious about the total value of China's domestic houses. Statistics shows that the total value of the current domestic house value probably reachs 90 trillion yuan, which is beyond the China's GDP nearly 200%. While urban residents need to spend nearly 22 years of wages (without eating) in order to buy an apartment.