Yanlord Group reaps RMB1.5b in contract sales for April

It’s on track to achieve its 2015 RMB18b sales target.

Yanlord is starting 2015 on a strong note, following a soft 2014 due to policy measures.

According to a report by RHB Group, the group achieved RMB2.8bn in contract sales for 1Q15, which was up 40% yoy, due to strong take-ups for its launches in Shanghai, Tianjin, Nanjing, Suzhou and Zhuhai. This was followed by another RMB1.5bn in contract sales for April.

RHB adds that Yanlord has set a sales target of RMB18bn for 2015, up 40% on last year, and current sales trajectory puts it to track to achieve this number.

This is aided by the government’s relaxation of measures on the residential market, reducing downpayment requirements for 1st time buyers from 30% to 20%, and second-time buyers from 60% to 40%.

Here’s more from RHB Group:

1Q15 should represent a trough in earnings, following which a series of new launches during the summer months to October and delivery of existing pipeline should enable the group to post a steady growth in sales over the next 2-3 years.

The group has typically achieved strong sell-through for its projects in cities like Nanjing, Tianjin, Shanghai and Suzhou, and is able to raise selling prices in subsequent phases of launches to achieve higher gross margins.