2015-03-20

Listed Developers Reduce Sales Targets

Developers cut sales targets as profit dips
Longfor is expecting a 10 per cent growth in contracted sales this year after missing last year's target of 20 per cent. That, it believes, will give it room for further restructuring efforts it started in 2012, cutting land reserves and construction while speeding up inventory sales.

Another developer, Guangzhou R&F Properties, was so badly hit by the market downturn that it decided against paying any dividend, the first time since listing nine years ago. Sales fell short of target, even after a downward revision.

Developers have now come around to the view that home prices will not increase forever and have begun in earnest to try to clear their inventories.

They are also trying to overcome the margin compression they have been facing of late and tackle the evolution of the industry, particularly in sales, marketing and funding brought about by the internet.

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