Chinese real estate giants are pushing ahead with mergers and acquisitions (M&As), taking advantage of the financial woes of their smaller rivals.

In the first quarter of this year, 32 M&A deals occurred in the real estate sector, more than tripling that of the same period last year, according to data from the Beijing-based Zero2IPO Research Center. Those deals were worth 8.32 billion yuan ($1.28 billion), soaring 229.1 percent year on year.

In the latest case, the Guangzhou-based EverGrande Real Estate Group recently paid 1.66 billion yuan ($255.4 million) for a 71-percent interest in the Shenzhen Construction Group Co. Ltd. In another move, Beijing Urban Construction Co. Ltd. agreed to acquire a 45-percent stake in the Beijing Century Hongcheng Co. Ltd.

"Smaller property developers are coming under mounting financial pressures as their sales plunge and domestic monetary environment tightens," said Yang Yongxu, an analyst with the E-house China Research and Development Institute. "That provided an opportunity for cash-awash behemoths to expand their footprint."

"With austerity government measures set to continue, there will be further consolidation in the industry this year," said Xu Weiqing, an analyst with Zero2IPO.

The sector is likely to witness more than 100 M&A deals in 2011, compared with 84 in 2010, Xu said.

"The consolidation is a needed boon for the industry to mature," said Nie Meisheng, Director of the China Real Estate Chamber of Commerce. "Now is the best timing for the property gurus to solidify their market foothold."