Sales in the Chinese housing sector are increasingly concentrated amongst a small coterie of leading real estate concerns.
A new report from Huachuang Securities (华创证券) indicates that during the period from January to October China’s 50 leading real estate enterprises saw sales reach 7.5 trillion yuan, to account for over 60% of nationwide commercial housing sales.
This compares to a share of less than 20% for China’s 50 leading real estate enterprises in 2011.
From 2011 to 2019 the share of national commercial housing sales enjoyed by China’s 30 leading real estate enterprises has risen from 15% to 50%, while the share of the 10 leading real estate enterprises has lifted from 10% to 30%.
“The acceleration of industry concentration is rising,” said the Huachuang Securities report.
A report from CRIC (克而瑞) indicates that the top hundred real estate enterprises in China saw total sales for January – November 2019 reach approximately 10.3 trillion yuan, for YoY growth of 17.7%.
As of the end of November 27 of these real estate enterprises saw sales exceed 100 billion yuan, with CRIC forecasting that the total number of companies to breach this threshold will exceed 30 this year.
This compares to just five years ago, when only seven Chinese real estate enterprises saw housing sales surpass 100 billion yuan.