The pain of China Merchants Property

　　　　The brand reputation of China Merchants Property has been greatly affected by the massive rights protection activities of the owners for many times, but China Merchants Property is still speeding up the staking, hoping to return to the camp of first-line developers as soon as possible.

　　　　China Merchants Property recently announced that it had acquired A4 and B4 plots in Laiguangying Township, Chaoyang District, Beijing through cooperation with Wharf, with a transaction price of 2.37 billion yuan, accounting for 50% of the company’s interests. This action has been recognized by many brokerage analysts, and given them "buy" and "strongly recommended" ratings.

　　　　In fact, since January 2011, China Merchants Property has repeated this action eight times, winning 15 plots, and the land price is as high as 10.665 billion yuan, which is more than half of its sales in 2011 and several times more than that in 2010.
Not only that, Liu Ning, the secretary-general of China Merchants Property, once told the media: "Compared with other real estate enterprises, the land reserve of over 10 million square meters seems low, but this is not our weakness. The company’s major shareholder (China Merchants Group) has a lot of land reserves in Shekou, Shenzhen, and we can completely take the land from the major shareholder. We are not worried about this. "

　　　　Recently, there have been many reports and research reports that China Merchants Real Estate wants to achieve "overtaking in corners" and return to the first-line camp of "seeking insurance". This news is not groundless. In April last year, Lin Shaobin, the newly appointed chairman of China Merchants Property, said frankly: "The company’s goal is to be a first-class real estate developer, hoping to enter the ranks of first-line real estate developers in the next 10 years."

　　　　Compared with leading real estate enterprises such as Vanke and Poly, which started in the same period in 2005, China Merchants Property has actually fallen far behind. According to the statistics of Zhongfangxin Group, in 2011, China Merchants Property ranked 17th with sales of 21 billion yuan, 10.5 billion yuan behind Shimao Property, which ranked 10th. The gap between China Merchants Property and Vanke, which ranked first, was as high as 100 billion yuan, and the gap between China Merchants Property and Jindi, which was declining in ranking, was 8 billion yuan. In the previous years of 2009 and 2010, the sales ranking of China Merchants Property also hovered around 17.

　　　　"Among the recruitment, insurance, ten thousand and gold, investment promotion has fallen behind in the past few years, and will continue to fall behind in the future, and the return to the front line is far away." Zhang Hongwei, director of the same policy consulting research center, told reporters. Zhang Hongwei believes that the products of China Merchants Property are mostly high-end projects with high quality, which are not as "high turnover" products as Vanke and Poly. If the turnover rate is slow, the development will naturally be slow.

　　　　Looking at Beijing, China Merchants Property’s two projects in Beijing are located in the middle and high end. Park 1872, which opened earlier, can still maintain a good sales trend, but the sales of China Merchants Jiaming Longyuan, which opened later, are not optimistic. According to the statistics of "Investor News" reporters, of the 1,473 suites that have been pre-sold since the opening of the "China Merchants Jiaming Longyuan" project in 2010, only 290 sets have been sold at present, and the removal rate is only 20%.

　　　　In addition to being affected by regulation, China Merchants Property’s projects in Beijing are facing more brand reputation crisis. After the two previously developed projects have been criticized, China Merchants Property’s future projects in Beijing may face more severe challenges.