The brand value of Chinese real estate companies, especially top ones, saw significant growth in 2019, which shows the stronger influence of Chinese brands and the tendency of centralization in the property market, a study from the China Index Academy showed.
Growth for domestic property companies' brand value reached 37 percent this year, outperforming the growth of their sales up to 26.5 percent, according to a recent report released by the China Real Estate Top 10 Research, which belongs to China Index Academy.
The average value of property brands reached 34.6 billion yuan ($4.87 billion). The brand value of China Overseas Property and China Vanke, two leading companies, surpassed 90 billion yuan, it said.
"The assets and brand value for Chinese property companies grew rapidly amid the 16 years of development. The role of brand has also become more and more important amid the expansion of enterprises and the fierce market competition. Brands bring trust to clients," said Li Jianqiao, corporate research director for the R&D center of the China Index Academy.
Enterprises enhanced their brands by providing high-quality residences, which have also increased their market share in certain regions, he said.
Besides, the centralization of the property industry in China has become more obvious. It's easier for companies with strong brand influence to get financing from the capital market and get projects with lower cost and good location, as the whole market tends to cool down because of tightened government regulation, according to the report.
Brand recognition, reputation and loyalty for leading real estate companies in China reached 70.52 percent, 70.84 percent and 58.92 percent, respectively, much higher than other companies, which showed the strong influence of top companies among customers, it said.