China Resources (Holdings)

CR Land sees 62.5pc rise in finished projects

PUBLISHED : Thursday, 21 December, 2006, 12:00am
UPDATED : Thursday, 21 December, 2006, 12:00am

China Resources Land, which yesterday won shareholder approval to buy almost HK$3 billion worth of mainland assets, expects its residential completions to increase 62.5 per cent next year.

The area of newly completed building will reach 650,000 square metres next year from this year's 400,000 sqmetres, mainly from projects in Beijing and Chengdu, the Hong Kong-listed developer said.

The red-chip company, which won approval from shareholders to buy property assets in Beijing and Chengdu from state-owned parent China Resources Holdings for HK$2.73 billion, booked a sale area of 352,409 sqmetres last year, said Cheng Chau-ping, the manager of the investor relations department.

'How much area can be booked as profit depends on the progress of sales but it seems demand for housing is still strong,' Mr Cheng said.

Residential sales in terms of area and value had reached their targets for this year, without giving exact figures, managing director Wang Yin said.

Mr Wang said central government austerity measures over the past year to cool the property sector had had some impact and he expected no dramatic change in the 'policy environment' next year.

Housing prices would have a 'normal' 5 to 10 per cent growth next year given rising demand amid the sustained boom in the domestic economy and urbanisation.

The selling price of commodity housing in 70 main cities rose 5.5 per cent year on year in the third quarter this year, according to figures from the National Development and Reform Commission.

CR Land, which has an attributable land bank of 9.5 million sqmetres, is expected to book a sale area of 385,310 sqmetres this year, 535,553 sqmetres next year and 916,897 sqmetres in 2008.

The increased sales may boost profits to HK$1.36 billion in 2008 from last year's HK$385 million, according to a China International Capital Corp research report.