Guangzhou property sales on road to recovery
Guangzhou's residential property market is beginning to recover after several years of sluggishness, China Overseas Holdings vice-chairman Xiang Bin says.
He warned that the secondary market was still immature and he expected home prices in the city would remain stable in coming years.
Mr Xiang was speaking at the pre-sale launch of 120 residential units in the first phase of its joint venture Glorious City Garden in Guangzhou.
Encouraging sales were reported, with 106 units snapped up by buyers yesterday.
The project was being developed by Guangzhou Xin Yue Real Estate Development, 40 per cent owned by China Overseas.
Sun Hung Kai Properties (SHKP) and Yue Xiu Enterprises Holdings have 30 per cent each.
SHKP China division deputy general manager Stephen Chau Sai-yim said Guangzhou Xin Yue had committed $300 million to the first phase development comprising fourteen 10-storey residential towers.
The second phase would include four 33-storey residential towers and an office building, while the third phase had yet to be finalised, he said.
The total development cost of the project would be two billion yuan (about HK$1.85 billion), he said.
Mr Chau said the latest 120 units were offered at $9,000 to $10,000 per square metre, about 10 per cent higher than the first batch of 120 units released in April.
Another 80 units were sold internally.
Mr Chau expected all units in the first phase would be put on sale in the first half of this year. When sold, they would generate estimated revenue of $550 million.
He said the developer had moved to register buyers and impose penalty charges after some reportedly traded places in the queue for money during the previous sale.
