Alright folks, let’s talk Poly Developments (00119.HK). The latest numbers dropped today, and while they’re not exactly setting the world on fire, they’re…interesting. March saw contract sales hit around 6 billion yuan, covering roughly 238,000 square meters with an average selling price of 25,283 yuan per square meter. Frankly, that ASP is a bit lower than I’d like to see.
Cumulatively, through March, Poly has clocked 14.5 billion yuan in contract sales, spanning 523,000 square meters, and maintaining an average selling price of 27,650 yuan per square meter. It’s a start, but is it enough to reverse the trend? I’m still cautiously pessimistic, honestly. Don’t get me wrong, any sales are better than no sales in this market.
Let’s dive into what these numbers actually mean. The Chinese property market, as we all know, has been in the shitter for a while. These figures represent a potential stabilization, but definitely not a robust recovery.
Here’s a quick breakdown for those who aren’t as immersed in this mess as I am:
Contract sales are a key indicator. They show actual commitments to buy, not just expressions of interest. It’s cold, hard cash (eventually).
Average Selling Price (ASP) reflects the market’s willingness to pay. A falling ASP? Not ideal. It suggests developers are having to offer discounts to move units, chipping away at profitability.
Sales Area tells us the volume being moved. Higher volume can offset a lower ASP, but not always. It’s a delicate balancing act.
Honestly, I’m watching Poly closely because they’re usually a bellwether for the broader market. They’ve got a solid reputation and a relatively strong balance sheet. If they’re struggling to ignite sales, it doesn’t bode well for the rest of the sector. We need to see consistent growth, not just a fleeting uptick, before we can declare a turnaround. This isn’t champagne time yet, people. Stay vigilant.
