Kaisa resets sights on projects in top-tier cities
Kaisa, which is 17th in terms of flat sales on the mainland, is also in talks with the Shenzhen government for three projects in Qianhai, an area Beijing has designated as a Shenzhen-Hong Kong modern service industry co-operation zone.
Shenzhen property developer Kaisa Group will refocus on first- and second-tier cities, where urban redevelopment projects are in greater demand.
Kaisa's net profit rose 9 per cent year on year to 2.07 billion yuan (HK$2.55 billion) for the year ended December on 11.9 billion yuan of revenue, the company said yesterday. No dividend was declared. The average selling price of flats sold fell 4 per cent year on year to 6,730 per square metre from 7,022 yuan per square metre, as more flats were bought in third-tier cities, including Nanchong in Sichuan, Taicang in Jiangsu and Foshan in Guangdong.
But Kaisa plans a comeback in first-tier cities this year.
"Urban redevelopment projects are the top priority in our development plan now," Kaisa chairman Kwok Ying-shing said. These projects in prime downtown locations could be sold at higher prices, Kwok added.
The company will complete some redevelopment projects in Shenzhen this year.