Agile Property Hits Sales Target Thanks to 17% Price Cuts

Sales were up 34% yoy and the firm hit its sales target for 1H 2014. The firm used aggressive price cutting to drive volume.
雅居乐上半年以价换量:销售额216.7亿 同比增超34%
Agile Property announced that the first half of 2014 sales of 21.67 billion yuan, according to early Agile established 48 billion yuan of view in the first half it has completed its 45% annual sales tasks.

According to Agile Property released as of June 2014 unaudited operating data show that the first half of this year, the cumulative pre-sales amounted to $ 21.67 billion yuan, an increase of 34.2%. Sales area of ​​2.204 million square meters, an increase of 61.8%, with an average sale price of 9,832 yuan per square meter. Which in June, amounting to 5.21 billion yuan presale; presale construction area of ​​644,000 square meters; sale price of 8,086 yuan per square meter.

In the same period in 2013, Agile achieve cumulative sales of 16.14 billion yuan contract, contract sales area 1,362,000 square meters, the contract sales price of 11,851 yuan / square meter.

Although Agile in the sales area and sales amount achieved a large increase, but sales have seen a 17% price drop, which is taken in the first half Agile price for the amount of sales strategy are inseparable. In February this year, Agile's six tourism real estate projects across the board 7.8% discount to the start of this year's price surge, followed by a number of projects located in Guangzhou, Foshan, Zhongshan, Chengdu, Hainan, Changzhou and other places have heard markdowns news in which the highest price cut more than 7000 yuan / square meter.

According to a person familiar with Agile analysis pointed out that the scale of growth under pressure, Agile's price cuts for the return of funds, adjust the direction.

Agile this year's sales price way down, from 12,917 yuan in January / square meter to June of 8086 yuan / square meter, the average price fell by more than 37%, the price dynamics is quite substantial.

2013 Agile amount of 40.34 billion yuan sales, an increase of 22%, but did not complete the sales target of 42 billion yuan to develop, and this is the third consecutive year, Agile did not complete the annual sales target.

Agile had an insider revealed to the media:. "There are going to accelerate cash collection and inventory requirements on the project, if the first price reduction ineffective, then the second will increase the discount rate."

Recent studies report that UBS, Agile is actively price promotions, especially large size projects. Given the company's sales this year accounted for a relatively small lock, push plate price margins and profitability next year this will bring a direct negative impact.

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