Country Garden’s sales volume amount to a whopping RMB34b by 3Q11

Having secured 75% of its full-year sales target of RMB34bn by 3Q11, Country Garden is confident about reaching its target by year-end. With respective to sales during the Golden Week Holiday, the company indicated that volume (in GFA terms) was in line y-o-y, but contracted ASP was higher y-o-y as sales were generated from successive phases of earlier projects.

Gearing level was largely unchanged from the interim level of 66.5%, but Country Garden does expect some improvement by year-end. In terms of presales cash collection, cash from May and June contacted sales has been collected, while the cash collection ratio is expected to be similar that achieved in 1H11.

Country Garden has no pressure to cut prices, as it believes there is a lack of comparable projects near its developments. This sticky pricing strategy is seen to minimize the impact to earlier  purchasers. Only small discounts are offered to cash buyers.