龙湖 Group Reports Sales of 65.14 Billion RMB in First Eight Months, Demand for Improvement-Type Products Remains Strong
Beijing, September 1, 2024
龙湖 Group, one of China’s leading real estate developers, has announced that its sales reached 65.14 billion RMB in the first eight months of 2024, signaling a robust performance in a market that has seen many of its peers struggle. The company’s focus on high-quality, improvement-type products has resonated with consumers, driving demand even as the broader real estate market faces headwinds.
According to data released by China Real Estate Information Corporation (CRIC) on August 31, the top 100 real estate enterprises in China achieved a combined sales volume of 23.82 trillion RMB in the first eight months of the year, marking a 36.5% decrease year-on-year. In August alone, sales reached 2.51 trillion RMB, down 10% month-on-month. Despite the overall market downturn,龙湖 Group managed to maintain its position within the top 10, with a sales volume of 65.14 billion RMB, and an August sales figure of 6.51 billion RMB.
Focus on Improvement-Type Products
The company’s success can be attributed in part to its strategic focus on improvement-type products, which are designed to meet the evolving needs of consumers looking for higher-quality housing. In a market where many developers have been hit by the slowing economy and reduced consumer spending,龙湖’s approach has allowed it to stand out.
During the Promoting High-Quality Development thematic press conference held on August 23, Minister of Housing and Urban-Rural Development倪虹 emphasized the importance of incorporating new technologies, such as information technology, green low-carbon technology, and innovative construction methods, into the housing sector. He highlighted the need for the industry to shift from a focus on speed and quantity to quality, technology, and service, which aligns closely with龙湖’s strategy.
Strong Consumer Interest
Millennials and Gen Z, who are increasingly becoming the primary homebuyers, are looking for homes that offer not just basic shelter but also a lifestyle upgrade.龙湖’s new product line, Guan Cui, which was launched in line with the company’s Good House standards, has received a warm reception. The Guan Cui demonstration area in Chengdu and the Future Royal Lake demonstration area in Suzhou have attracted nearly 10,000 potential buyers, indicating strong interest in the company’s offerings.
Financial Stability and Market Outlook
Morgan Stanley’s recent research report noted that龙湖’s robust balance sheet and strong recurring income have positioned the company well to navigate the challenges in the real estate market and capitalize on opportunities for recovery. The firm’s ability to maintain financial stability even during the market downturn is a testament to its resilience.
Following a period of sluggishness in July and August, the real estate market is expected to pick up in September, traditionally a peak selling season. CRIC predicts that developers will increase their marketing and promotional activities, leading to a modest increase in sales. However, the actual growth will depend on the effectiveness of policy stimulus measures.
The real estate market is currently in a bottoming-out phase, according to Wutai Trust. However, with sales volumes still at historic lows, the market’s stabilization will require sustained policy support.
Conclusion
Despite the challenges facing the real estate sector,龙湖 Group’s focus on high-quality, improvement-type products has allowed it to maintain a strong sales performance. With a strategic approach to development and a commitment to innovation, the company is well-positioned to weather the current market downturn and emerge stronger in the future.
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