Login

Reload

Remember me Forgot it?

Not a subscriber?

Click on the button below to create your account and get immediate access to Xinhua Silk Road Database.

Start a Free Trial

Subscribe

Belt & Road Weekly Subscription Form

Research Report

The full edition of the report is available at Xinhua Silk Road Database. You can click the “Table of Content” to have a general understanding of it.

Click on the button below to create your account and get immediate access to thousands of articles.

Start a Free Trial

China Brand

HOME > China Brand


China's Evergrande becomes world's most valuable property brand

September 6, 2018


Abstract : Chinese property heavyweight, Evergrande, has become the world's most valuable real estate brand with its brand value more than doubling over the last year to 16.2 billion U.S. dollars, according to a new report.

EVERGRANDE

BEIJING -- Chinese property heavyweight, Evergrande, has become the world's most valuable real estate brand with its brand value more than doubling over the last year to 16.2 billion U.S. dollars, according to a new report.

Brand Finance, a London-based brand valuation consultancy, has evaluated the 25 world's most valuable real estate brands of 2018.

Its research revealed that Chinese real estate brands account for nine of the world’s top 10 most valuable brands.

Evergrande is China's second-largest property developer as well as the owner of the Guangzhou Evergrande Taobao Football Club, which won both the Chinese FA Super Cup and the Chinese Super League championship last season.

In addition to becoming the most valuable real estate brand in the world, Evergrande has also emerged as the fastest-growing brand in the list last year at an eye-watering 118 percent increase in its brand value.

David Haigh, CEO of Brand Finance, said "Evergrande's superb results can be attributed to fruitful net profits over the past year, a credit to the company's tactical cost cutting, delivering properties of a larger square footage area and in turn generating higher sales."

Other fast-growing brands included Longfor Properties (up 78 percent to 4.8 billion U.S. dollars), China Merchants Shekou (up 67 percent to 1.3 billion U.S. dollars), and Sun Hung Kai Properties (up 60 percent to 3.9 billion U.S. dollars), even though each grew from a lower base.

Dalian Wanda Commercial Properties fell significantly by 8 percent to 7.8 billion U.S. dollars, losing the number one ranking and dropping to third. This change of fortune coincided with the brand's movement away from property development toward a focus on alternative business opportunities.

"The global property market has endured cycles of boom and bust, and the Chinese property market is unlikely to be substantially different in the future," Haigh said, "Evergrande is posed to ride the surge, but Dalian Wanda's move away from traditional property development represents an effort to build the value of their brand outside the cyclical nature of this industry.

The Brand Finance Real Estate 25 ranking as a whole features 17 Chinese brands, including ten brands from Chinese mainland, and seven from Hong Kong.

Haigh pointed out that these brands have experienced sky-rocketing revenues due to the boom in the Chinese market in recent years, but there are some indications that the boom is coming to an end.

The National Bureau of Statistics for China observed a housing prices contraction in tier-one cities such as Beijing, Shenzhen, and Shanghai, and a slowdown in the growth of prices in tier-two and tier-three cities.

"In a bid to pre-empt a sense of crisis or a property market crash, the authorities have warned in recent months against speculation in the residential market," Haigh said.

Beyond the Chinese brands, the most valuable real estate brands in the world are the United Arab Emirates’ Emaar Properties, with a value of $2.7 billion, followed by US brands Simon Property Group (2.1 billion U.S. dollars) and CBRE (1.9 billion U.S. dollars). (Source: China Daily)


Related Coverage

Focus

Think Tank

  • China's rural land reform will go much deeper this y...

    February 21, 2019

    As stated by the Document, "laws, regulations and policy measures need to be...

  • How will Brexit crisis affect China-UK economic ties...

    February 20, 2019

    It is crucial for China to understand that the first forces active in the Br...

  • Why China remains a magnet for foreign investment?

    February 20, 2019

    With all of these new initiatives in the works, it's fair to say that China ...

  • Greater Bay Area a center of innovation

    February 20, 2019

    The successful establishment of the Greater Bay Area as a center of scientif...

  • Ask Us A Question

    If you have any questions, please enter them in the box below.

    Reload

    Write to Us

    Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to silkroadweekly@xinhua.org and share your stories with more people.

    Click on the button below to create your account and get imhttp://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

    Start a Free Trial