Easier now to buy land on mainland, says Hang Lung's boss Chan

Hang Lung Properties, which has HK$65.89 billion in investment on the mainland, is finding local governments more willing to sell land, chairman Ronnie Chan Chichung said.

"It has definitely gotten easier," said Chan, whose company derives half of its rental earnings from its shopping centres on the mainland. "The local governments want to sell more and you have developers who are eager to buy."

The value of land transactions on the mainland rose to 96.4 billion yuan (HK$118.2 billion) last month, the highest this year, as developers expect home prices to recover after two central bank interest rates cuts in June and July.

Prices rose last month for a third consecutive month, said SouFun Holdings, the nation's biggest real estate website owner.

Developers with improved sales and cash flows are showing renewed interest in land acquisitions. Seven of the country's biggest developers by market value, including China Vanke, bought land worth 8.9 billion yuan in major cities in the first week of this month, China Daily reported last week.

"We have never stopped negotiating; the question is whether we are going to bite or not," said Chan. "Our situation is a bit different because we want our sites to be in the best location. So if you want something that's tailor-made, it obviously would take longer."

Hang Lung last bought a site in Kunming in September last year, its first land purchase in the country in more than two years.