After Not Using The Property Market To KickStart The Economy, Vanke’s Sales Increases

After Not Using The Property Market To Kick Start The Economy, Vanke’s Sales Increase 30 Per Cent
A sign of China Vanke is seen in Hong Kong, China August 22, 2016. (Photo: REUTERS/Bobby Yip)

The first half-year profit of China's second-biggest property firm Vanke ending on June 30,  saw a 30 percent increase to 11.854 billion from 9.12 billion yuan from 2018 despite cooling in the housing market.

Year-on-year, the company's net profit was also higher with 2018's revenue going up to 32.9 percent or 139.3 billion yuan from 104.9 billion yuan.

Engaged in developing, managing and selling properties in more than 60 cities in China specifically in the Bohai-Rim Region, Pearl River Delta, and Yangtze River Delta, Vanke also provides consultancy services, e-business, provision of investment and trading.

The company also has commercial development and operation, logistics, ski resorts, and warehousing.

It has branches in Hong Kong, Malaysia, United Kingdom, and the United States.

The company, in a statement on April 20, credits its shareholders in its net profits.

Vanke got hold of 54 new projects this first half of 2019 with a projection of a gross floor area of 13.73 million square meters.

Yanking it to the third place in 41 cities in sales amount in property development, Vanke sold 21.5 million square meters for 334 billion yuan.

Since July 2019, a new house's average cost went up by 0.59 percent. This is the slowest increment in five months.

Out of the 70 cities' property market that China's National Bureau of Statistics is monitoring, nine didn't have any increase in its houses' property at all in July.

According to the bureau, an average house's cost was 0.66 percent higher in June and 0.71 percent higher in May.

Besides, the Chinese government, courtesy of its Polituro, the highest decision-making body said on a July 30 meeting that it will not ease the challenges the property market faces saying housing is "for living" not "speculation." No way will it get used to jumping-start the economy.

This lead to the country's top 100 developers' sales slowing down in the first half of 2019.

In its report for the first half period, Vanke acknowledged that local governments have regulations to stabilize housing price and expectation together with land premium.

Even banks were directed by China Banking and Insurance Regulatory Commission to monitor loans in the real-estate to control high debts. This included loans going to developers and buyers' mortgages.

In May, financing to developers who had not yet gotten all the approvals and secured all the funding to start building were stopped.

Vanke, in 2018 is 332nd in the Fortune Global 500 and this year is at 133rd in the Forbes' Global 2000.

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