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Evergrande Holds the Press Conference at the First Anniversary of No-reason House Return

 Date:2016.03.24   Publisher:Evergrande Group

On March 22, Evergrande concurrently held the "Press Conference at the First Anniversary of No-reason House Return" in Guangzhou and other 172 cities in China. Benefiting from the implementation of "no-reason house return", last year Evergrande reached a cumulative sales volume of RMB 201.34 billion and a sales area of 25.512 million square meters, hitting record highs, while the rate of returned houses was only 0.91%.

According to the insiders, nearly one year after carrying out "no-reason house return", Evergrande not only opens up a broader market space, but also provides people with more products and services with high cost-effectiveness and promotes the healthy development of the industry. Thus, it can be said that it is a multi-win move.


Scene of the press conference

The basic strength and confidence source from high quality and high cost-effectiveness

In April, 2015, Evergrande Group initiated to carry out "no-reason house return" for all Evergrande houses all over the country. One year since the implementation of "no-reason house return", the rate of returned houses was only 0.91%.

"Our rate of returned houses was only 0.91%, which full proved the high quality and high cost-effectiveness of Evergrande products. This is also the basic strength and confidence for Evergrande to carry out 'no-reason house return'," said He Miaoling, Vice President of Evergrande Group, who attended the press conference that day.

Evergrande is the only enterprise in China which can produce on a large scale and sell all the houses with fine decoration. All the organizations which conduct the decoration are leading enterprises in the industry in China, and all the materials used are branded products from home and abroad.  Besides, in September last year, Evergrande established cooperative alliance with 15 branded home enterprises. The owners of Evergrande's properties can enjoy comprehensive branded home services.

While ensuring the high quality of the houses, through its strong ability in cost control, especially by adopting the model of "unified procurement all over the world and unified material distribution all over the country, Evergrande ensured the quality of the products and effectively controlled the cost.

A senior professional in real estate said that Evergrande's strength is more importantly reflected in the management level of the developers, in addition to in home decoration. Evergrande strictly implemented standardized management in land purchasing, design, selling, engineering and other development chains, which effectively controlled the cost and surrendered benefits to people. While ensuring the quality of the products, Evergrande won the market with the advantage of high cost-effectiveness.

In 2015, the overall average selling price of Evergrande's houses was about RMB 7,500 / square meter. After deducting the average price of fine decoration of RMB 1,500 / square meter, the average selling price of Evergrande's houses was about RMB 6,000 / square meter. Furthermore, most of the projects were distributed in the areas with strong rigid demand or in the core areas of the city, which met the needs of people's wellbeing and had high growth potential.


Scene of the press conference


At the scene of the press conference, the large screen is showing the live broadcasting of the activities all over the county

"No-reason house return" promotes the skyrocketing of the performance of Evergrande

With the escort of the high quality and high cost-effectiveness of the products, the "no-reason house return" of Evergrande has taken root in the hearts of the people and thus further promotes significant increase of its sales indicators. Last year, Evergrande reached a cumulative sales volume of RMB 201.34 billion and sales area of 25.512 million square meters, hitting record highs.

"The role of 'no-reason house return' in driving the performance of Evergrande is obvious. The indicators of the projects including the overall visiting, transaction conversion and the proportion of the new transactions driven by previous transactions rise in different degrees, far exceeding those of the projects of the real estate enterprises in the same province," said a real estate analyst.

Analysis believes that, in 2015, under the circumstances that the economic growth slowed down and the property market as a whole was still sluggish, the performance of Evergrande grew significantly. This lies not only in the high quality and high cost-effectiveness of its products. In the meantime, the implementation of "no-reason house return" eliminates the worries of consumers on the fluctuations of the property market and greatly promotes the continued hot-selling of its houses all over the country.

Currently, protecting the rights and interests of house buyers is often ignored. The "no-reason house return" of Evergrande guarantees the zero risk of purchasing houses. Therefore, many second home buyers once again select the houses of Evergrande. The good sales performance of Evergrande last years also fully reflects the influence of implementing "no-reason house return".

On the basis of high growth of sales performance, thanks to the implementation of "no-reason house return", the advantage of Evergrande in leading the real estate enterprises with the same scale is more obvious.  The growth of the sales volume of Evergrande in 2015 was higher than that in 2014 and was also higher than those of the enterprises of the same trade. Among the real estate enterprises with an annual sales volume of over RMB 100 billion, the growth of the sales volume of Evergrande was 22% higher than that of the enterprise ranked second. Except for Evergrande, the average growth rate of the sales amount of the other six real estate enterprises with an annual sales volume of over RMB 100 billion was 12%, 41% lower than that of Evergrande; the average growth rate of the sales area of Evergrande was 6% higher than that of the other six real estate enterprises with an annual sales volume of over RMB 100 billion.

"Guarantee for return" boosts the healthy development of the   industry

In order to further surrender benefits to people, at the first anniversary of "no-reason house return" , Evergrande will launch a series of preferential measures and will continue to implement "no-reason house return" .

From the perspective of insiders, while driving the sustained and rapid growth of Evergrande's own performance, the "no-reason house return" of Evergrande will have a profound influence on the healthy development of the entire real estate industry.

"As a leading enterprise, Evergrande's implementation of "no-reason house return" is a reform of overturning the industry. With the joining of more real estate enterprises, the "guarantee for return" of houses will become the new normal in the market, which will promote the industry to change the business philosophy, attach greater importance to improving the quality of the product and protecting the rights and interests of house buyers and boost the healthy and sustainable development of the industry," said the afore-said real estate analyst.

On the afternoon of the same day, the 2016 China Top 500 Real Estate Developing Companies Evaluation Result Conference co-sponsored by China Real Estate Association and China Real Estate Assessment Center was held in Beijing. At the conference, Xia Haijun, Vice Board Chairman and President of Evergrande Group, delivered the keynote speech "Real Estate for People's Wellbeing Boosts the Leapfrog Development of Evergrande, elaborating the strategic thinking of implementing "no-reason house return", which won enthusiastic response.


Xia Haijun, Vice Board Chairman and President of Evergrande Group, delivered the keynote speech

"As the real estate industry develops to today, house has become one kind of goods, so it is reasonable that house should be given the promise of 'guarantee for return' like other goods," pointed out by Xia Haijun at the conference. He said that Evergrande proposed that the whole industry should implement "no-reason house return", further protect people's rights and interests in buying houses, promote the industry to improve after-sale services, enhance the quality of the product, and boost the reform of the supply front of real estate.

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