Beijing unlikely to tighten property restrictions much more, says Future Land
The Shanghai-based developer announces net profit rose 34 per cent to 1.38 billion yuan in 2016
Restrictions recently introduced by the government to cool the Chinese property market are unlikely to undergo much further tightening, according to Future Land Development.
The Shanghai-based homebuilder said recent measures designed to rein in runaway house prices are “unlikely to tighten too much”, given that Beijing still has to get the economy back on track.
“On the premise that China’s real economy is still facing challenges and the central government aims to stabilise it in 2017, it is unlikely to bring in too much tightening in the real estate sector,” said Wang Zhenhua, chairman of Future Land, during the company’s annual results briefing in Hong Kong on Monday.
Dozens of Chinese cities have announced measures in recent months – including restrictions on buyers who already own a home and minimum down payment requirements – to curb the price escalation that has plagued the market.
Future Land announced on Monday that its net profit rose 34 per cent year-on-year to 1.38 billion yuan (US$200 million) in 2016, driven by strong sales.
Core earnings, excluding one-off items and fair value changes, jumped 60 per cent to 1.16 billion yuan. The company ’s revenue also increased by 18 per cent to 28 billion yuan.