Mainland developer Agile Property Holdings says a quarter of its projects have been affected by purchase restrictions implemented to cool the property market, but it remains confident it will achieve its annual sales target of 37 billion yuan (HK$45 billion) this year.
'It's quite challenging because there are many tightening policies at central and local levels,' chairman Chen Zhuolin said as he unveiled the group's interim results yesterday.
Agile reported net profit for the six months ended June 30 nearly doubled from over 1.3 billion yuan to almost 2.58 billion yuan. That excluded after-tax value gains on investment properties. Net profit margin rose 3.6 percentage points to 22 per cent.
It declared an interim dividend of 10.8 HK cents per share, up 77 per cent compared with the same period last year.
Contracted, or committed sales that may not yet be completed, amounted to about 17.8 billion in the first seven months of the year, up 47 per cent. The sum is equivalent to 48 per cent of its full-year sales target of 37 billion yuan.
The developer said the average selling price of contracted sales in the first half grew 8.3 per cent to 11,040 yuan per square metre. Restrictions such as limiting families to owning no more than two properties affected a quarter of its projects, Chen said, and the tightening of mortgage loans and lending to developers also posed challenges.
In view of the cooling measures, Agile invested only 1.5 billion yuan in buying sites in the first half, well down on investment levels in previous years.
Chen said he was confident of meeting sales targets as there were usually more sales in the second half.