(Yicai Global) Sept. 14 -- All of China's major real estate developers posted substantial annual earnings growth over the first eight months of the year. In particular, Sunac China Holdings Ltd. [HKG:1918] recorded a 111-percent increase in sales in August. However, firms are considering lowering prices to boost sales in the face of tightening government regulation.

Property industry leaders saw their respective market shares continue to increase in August, a study of 22 real estate firms from Hong Kong-based real estate agency Centaline Properties shows.

China Evergrande Group [HKG:3333] and China Vanke Co. [HKG:2202; SHE:000002] delivered record sales numbers last month, with the latter saying its sales for the first eight months were almost equal to those achieved in full-year 2016.

Vanke sold a total floor area of 23.916 million square meters, up 34.5 percent annually, while total sales grew 47.3 percent to CNY349.78 billion (USD53.5 billion).

Evergrande saw contract sales totaling CNY321.68 billion from January through August while sales by floor area hit 32.467 million square meters, up 38 percent and 10 percent, respectively.

Sunac China outpaced all other developers to rack up CNY164.68 billion in contract sales.

Broad coverage across regional markets, ample supply and diversified product lines maintained stable performance in the sector, said Yan Yuejing, research director at E-House China Research Institute. Developers are therefore trying to scale up their operations.

The real estate sector also delivered impressive profit results overall. The 120 A-share listed property firms registered a total operating income of CNY442.4 billion and a net profit of CNY49.47 billion, equivalent to an average net margin of 11.2 percent, the Centaline Properties report said.

This year saw the largest increases in sales and profitability among real estate companies, said Zhang Dawei, Centaline Properties chief analyst.

Massive inventories in the market and strict regulatory measures could force developers to mark down products in order to stimulate sales for the remainder of the year, market insiders said.

Yan agreed, saying slashing prices to generate more sales as a possible credit crunch arises could become an important strategy going forward.

Most developers bought land at high prices last year under the belief that the house prices were on the rise, Zhang said. However, property prices have flattened and companies could face greater risks in the first half of next year.