Kerui Real Estate Research: In the first three quarters, the top 20 companies signed a new contract area of 12.4 million square meters, an increase of 40% over the end of the second quarter

The Zhitong Finance App learned that Kerry Real Estate Research published an article stating that in the first three quarters of 2024, the top 20 new large-scale companies signed an additional 120.4 million square meters of construction area, an increase of 40% over the end of the second quarter. Compared with the past two years, it accounts for 66% of the company's new construction area for the full year of 2023. From this, it can be seen that the scale growth rate has slowed down, but it is still significantly higher than in 2022 (accounting for 97.7% of the same company's new construction area for the whole of 2022).

According to the distribution of new construction areas in the first half of the year, 9 of the top 20 housing enterprises have added more than 5 million square meters of construction area, an increase of 5 compared to the end of the second quarter.

Looking specifically at enterprises, Greentown Management (09979) still ranks first in terms of the scale of additions. It added 27.2 million square meters in the first three quarters of 2024, an increase of 1.8% over the previous year, an increase of 9.74 million square meters at the end of the first half of the year. It is also the only company that added more than 10 million square meters during the year; Xuhui Construction Management and Blue City Group ranked second and third with 9.52 million square meters and 9.38 million square meters respectively.

The concentration of new scale additions to the industry continues to be high. At the end of the third quarter, the new construction area added to the TOP3 housing enterprises already accounted for 38.9% of the total construction area added by the TOP20 housing enterprises, and the share of the new construction area of the TOP5 newly added enterprises reached 50.9%.

“New” entrants are still actively expanding. In addition to Greentown Management, the biggest increase in the third quarter was Xuhui Construction Management and China Merchants Construction Management, which added more than 2 million square meters in size this quarter.

New government proxy construction accounts for 57%, and the proportion of urban investment proxy construction has declined

The overall pattern of entrustment parties for new construction by TOP20 companies has remained stable. The type with the highest share of clients in the first three quarters was still private enterprises, accounting for 37%, down 2 percentage points from the first half of the year; the share of clients from government backgrounds still reached 57.3%, which is basically the same as in the first half of the year; the share of entrusters from financial institutions rose slightly to 5%.

Commissions from private companies, such as Jinkejin Construction Management, Finance Co-Creation (Xingyuan Construction), and Ocean Construction Management, are the main sources of business, accounting for more than half.

Business sources such as Rundi Management and Greenland Intelligence are mainly clients with a government background. In particular, more than 90% of Rundi Management's entrustment comes from government agencies.

In terms of project types, commercial housing projects are still the main business type of contract construction, accounting for 56%, followed by public construction supporting projects accounting for 22%, commercial and industrial parks accounting for 13%, and guaranteed housing accounting for only 8%.