Evergrande takes title of world's most valuable brand in property

Evergrande takes title of world's most valuable brand in property

Thu, 13/09/2018 - 12:03

Evergrande chairman Hui Ka Yan (left) and chief executive Xia Haijun. Photo: Reuters

Nine of the world’s most valuable brands in real estate are based in China, with Shenzhen-headquartered Evergrande Real Estate named the most valuable brand in property, taking the title from Dalian Wanda Group, new research says.

Research released by Brand Finance showed Evergrande’s brand value doubled over the past 12 months to $US16.2 billion, surging past Dalian Wanda, which fell to third as the diversified conglomerate restructured its operations away from property development.

Evergrande is China’s second-largest property developer by sales and also owns Guangzhou Evergrande Taobao Football Club, winner of China’s FA Super Cup and Super League championship last season.

The luxury developer has four active projects in Australia, all located in Victoria.

Evergrande reported the Chinese property industry’s biggest ever first-half profit in the first six months of 2018, rising 63.6 per cent to 30.81 billion yuan ($US4.5 billion).

The developer said it would sustain its margins by expanding its operations in the top three tiers of Chinese cities, staying way from cities with slow economic growth.

Country Garden, which is also active in Australia, was ranked the world’s second most valuable brand in property by Brand Finance, growing from $US7.9 billion in 2017 to $US11.6 billion this year.

Other fast-growing brands included Longfor Properties, which rose 78 per cent to $US4.8 billion, China Merchants Shekou, which was up 67 per cent to $US1.3 billion and Sun Hung Kai Properties, which rose 60 percent to $US3.9 billion.

Of the top 25 brands in real estate, 17 were Chinese, Brand Finance said, with 10 from mainland China and the remaining seven from Hong Kong.

“The global property market has endured cycles of boom and bust, and the Chinese property market is unlikely to be substantially different,” Brand Finance chief executive David Haigh said.

“Evergrande is poised 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.”

Brand Finance’s rankings are based on the estimated net economic benefit a brand owner would achieve by licensing the brand in the open market.

The rankings also assess brand strength against a range of factors including marketing investment, stakeholder equity and business performance.

Outside of China, United Arab Emirates-based Emaar Properties was the best performer at 10th, with a brand value of $US2.7 billion.

United States-based real estate firms Simon Property Group and CBRE were ranked 11th and 14th, respectively.