The real estate tycoon's wealth has shrunk! No one entered the top ten of the rich list, and the brand value of Country Garden Vanke Longhu ranked among the top three real estate enterprises

Source: Time Weekly

Original title: Real estate tycoons shrink! No one entered the top ten of the rich list, and the brand value of Country Garden Vanke Longhu ranked among the top three real estate enterprises

The property market has cooled, and the ranking of the value of real estate tycoons has also begun to fall. In the top 10 of the 2020 Hurun Rich List, real estate developers occupy 4 seats. In 2021, not a single property developer has squeezed into the top ten of the list.

"For the first time in the real estate industry, no entrepreneur has made it to the top ten. On this year's brand list, the real estate industry has the largest average decline in brand value. On October 27, Hurun, chairman and chief research officer of Hurun Report, concluded when releasing the "2021 Hurun Rich List".

In the "2021 Hurun Rich List", Yang Huiyan, co-chairman of Country Garden, ranked 11th with assets of 185 billion yuan, is the top real estate entrepreneur, and once again won the richest woman in China. It was followed by Henderson Land Development founder Lee Shau Kee, with assets of 170 billion yuan, ranking 15th on the list.

At the same time, the brand value ranking of real estate enterprises has also undergone subtle changes. In 2021, Country Garden's brand value rose by 54% over last year to 37 billion yuan, ranking first; Vanke and Longhu ranked second and third respectively.

On October 27, the analyst of Zhuge Housing Data Research Center told the Times Weekly reporter that on the one hand, the capital market gradually expanded and improved investment channels, and the investment attractiveness of the real estate market weakened; on the other hand, the real estate market regulation and control continued to increase, housing and housing positioning throughout, coupled with the tightening of financial supervision, the "three red lines" increased the financial pressure of housing enterprises at the financing end. The decline in the ranking of real estate developers may become the norm in the future.

The decline in the ranking of real estate entrepreneurs reflects the downward reality of the real estate industry.

On October 15, the National Bureau of Statistics released the commodity residential sales price index of 70 large and medium-sized cities, in September, the overall prices of new houses and second-hand houses in 70 cities fell, the transaction volume of second-hand houses in key cities fell to a historical low, and the national sales area of new houses and commodity houses also hit a record low since 2016.

In recent years, the overall profitability of the real estate industry has faced great downward pressure, and profit indicators have hit a record low.

According to the data of the Kerry Research Center, in the first half of 2021, the gross profit margin, net profit margin and net profit margin of the 80 typical listed real estate companies in the industry continued to decline, and the decline was further expanded compared with 2020. Among them, the gross margin indicator fell the most, with the median gross margin in the first half of 2021 decreasing by 1.6 percentage points year-on-year to 21.7%. The median net interest rate and attributable net interest rate also decreased by 0.6 and 1.7 percentage points to 9.3% and 6.5%, respectively. Compared to previous years, the industry's overall profit margin indicator has fallen to its lowest level since 2015.

Bidding farewell to the era of high-speed growth, it is a consensus that the profits of the real estate industry are closer to the average level of social returns. Recently, a number of developer management personnel have spoken out to the outside world, calling on real estate companies to adapt to changes and adjust their strategies in a timely manner.

On October 22, at the Vanke business exchange meeting, Yu Liang, chairman of Vanke's board of directors, said that the real estate market has maintained double-digit growth for many years, which is not the norm. Entering the new normal, real estate has returned to the people's livelihood industry. This means that the industry should go to financialization and reduce leverage. Real estate enterprises that have been closely tied to finance for a long time will inevitably be accompanied by pain, but real estate enterprises that insist on doing a good job in products and services still have great opportunities.