China Property

Property developers raise targets for sales by up to 30pc

Firms are looking to as much as triple contract sales growth in 2013, aided by mainland urbanisation, end-user demand and projects overseas

PUBLISHED : Wednesday, 20 March, 2013, 12:00am
UPDATED : Wednesday, 20 March, 2013, 4:35am

Country Garden is aiming for growth of 30 per cent in contract sales this year, and is banking on increasing urbanisation on the mainland and demand from end-users to achieve that goal.

The Guangdong-based developer's contract sales by value rose 10 per cent to 47.6 billion yuan (HK$58.8 billion) last year. Contract sales by gross floor area grew 11 per cent to 7.64 million square metres.

The average selling price was 6,231 yuan per sq m, much the same as the previous year.

Country Garden's president, Mo Bin, said yesterday that the company aimed to deliver a total gross floor area of 8 million sq m this year, 30 per cent more than last year, with a target of 62 billion yuan for contract sales by value.

The company plans to launch 11 new projects this year. Of these, three will be located in Malaysia. "We will continue to seek investment opportunities in South East Asia, Europe and the United States," Mo said.

Country Garden's net profit grew 17.9 per cent, from 5.81 billion yuan in 2011 to 6.85 billion yuan last year.

Revenue jumped 20.6 per cent to 41.89 billion yuan last year, while recognised gross floor area rose by 4.5 per cent to 6.16 million sq m.

Recognised gross floor area is the total sales, including those contracted earlier, completed, delivered and accounted for in the books for the relevant financial year. The company's chief financial officer, Estella Ng, said the 4.97 million sq m that Country Garden sold last year would be recognised in this year's books. Based on the average price of last year, those sales could contribute more than 32 billion yuan.

Country Garden proposed a final dividend of 13.86 RMB cents a share, up from 12.96 RMB cents per share a year ago.

Elsewhere, the chairman of Fantasia Holdings, Pan Jun, said yesterday that his company was aiming at growth of 25 per cent in contract sales this year.

"We plan to achieve total contract sales of 10 billion yuan in 2013," Pan said. "The property market as a whole and prices are expected to be stable. Prices would only grow slightly."

The company's contract sales last year reached 8 billion yuan, 11 per cent higher than its target.

Fantasia is also seeking investment opportunities with higher returns overseas. The company has set up offices in Singapore, Tokyo and Los Angeles, and has acquired a site in Singapore. It plans to build boutique apartments on the Singapore site, which will be launched in the market this year. Pan said he expected investment returns from the project to exceed 15 per cent.

Fantasia yesterday announced that its net profit had climbed 7.8 per cent to 1.14 billion yuan last year, thanks to an increase in property sales. Its turnover grew 11.4 per cent to 6.23 billion during the period.

Fantasia proposed a final dividend of 5.5 HK cents per share for 2012, up from 4 HK cents per share the year before.

At Powerlong Real Estate Holdings, chief executive Hoi Wafong said his company's contract sales target was 8 billion yuan for this year, 22.7 per cent more than last year.

On Monday the company announced that its underlying profit grew 7.2 per cent to 968 million yuan in 2012 while revenue rose 11.8 per cent to 5.87 billion yuan.

Shares in Country Garden rose 3.14 per cent to close at HK$3.61 yesterday while Fantasia was up 3.96 per cent to HK$1.05. Shares in Powerlong Real Estate rose 1.73 per cent to HK$1.76.