Shui On Land

CR Land property sales soar 600pc

PUBLISHED : Thursday, 04 June, 2009, 12:00am
UPDATED : Thursday, 04 June, 2009, 12:00am

China Resources Land said yesterday that solid demand from both investors and end-users boosted contract property sales for the first five months by almost 600 per cent.

Managing director Wang Yin (right) said contract sales during the period totalled 973,000 square metres, up 578 per cent from last year. Revenue amounted to 8.68 billion yuan (HK$9.85 billion), accounting for 80 per cent of annual sales target.

Including projects sold but not completed last year, as well as sales on projects that are expected to be completed this year, the company already has achieved 12.2 billion yuan sales in the first five months. Under international accounting standards, a company can only recognise revenue from property sales upon a project's completion.

'In addition to end-user demand, we also see investors entering the market, which is a positive sign,' said Mr Wang. He said the outlook was good as the economy grew and the stock market stabilised. He added that the stimulus measures would also underpin the market.

The company plans to launch six to eight new projects in Shanghai, Chengdu, Shenzhen and Shenyang for the rest of the year, offering 1.1 million sqmetres of saleable area.

Mr Wang said current land prices were reasonable and the company would continue to build up its land bank. It will look for opportunities in major cities, including Beijing, Shanghai and Hangzhou.

Shui On Land chairman Vincent Lo Hong-sui said he expected land prices would not jump significantly in the short term. His comment came a day after Shimao Property Holdings chairman Hui Wing-mau warned that sites were being sold for excessively high prices.

Mr Lo is also the chairman of Shui On Construction and Materials. Socam said so far 72.3 per cent of shares had voted in favour of the proposed privatisation of its 42.9 per cent-owned China Central Properties before today's deadline.