The reporter noted that in the past week (February 28 to March 6), the total value of newly listed projects on the Beijing (property market) Equity Exchange reached 762 million yuan, with the real estate industry once again ranking among the top three in listing value.

 

　　As a capital-intensive industry, in a market environment where real estate developers have limited financing channels, equity transfers and property rights transactions may be a reliable option for them.

 

　　In this regard, Song Yanqing, president of Land Consultants, said in an interview with the Daily Economic News reporter that listing on an exchange is only one channel for property rights transactions by real estate developers. More developers complete transactions successfully through direct negotiations between buyer and seller. Because private real estate developers are not required to list, the actual number of transactions and transaction value are far greater than the listed transaction figures.

 

　　Hu Baosen, chairman of the board of Central China Real Estate Limited, told the reporter that 90% to 95% or even more of domestic real estate developers are project companies, with only one or two projects, and they may not necessarily develop every year. Companies that operate projects every year account for less than one-third. Those operating ten projects at the same time account for less than 1% nationwide. The top 100 real estate developers already account for more than 20% of the country's total development volume, and this proportion will increase further in the future.

 

　　The Real Estate Landscape Is Changing

 

　　In fact, real estate property rights transactions have long remained at a high level. According to data from the Beijing Equity Exchange, of last year's total transaction value of 63.1 billion yuan, real estate, business services, automobile manufacturing, the power industry, and nonferrous metal smelting and rolling processing ranked among the top five by transaction value.

 

　　Behind the transactions lies a change in the landscape of the real estate industry. The Blue Book on the Operation and Management of Real Estate Development Enterprises 2013 points out that as market competition becomes increasingly fierce, the average profit margin of the real estate industry will also become increasingly lower, and the trend of "an average annual net profit margin decline of 1 percentage point" is expected to continue.