Singapore-listed Dragon Land is to embark on a S$300 million (about HK$1.33 billion) housing project in Beijing.
Dragon Land is Singapore's foremost real estate developer in the mainland, but this is the first time it has expanded into the mass affordable housing market.
Peh Chin Hua, Dragon Land's chairman, said: 'A year ago, the Chinese central government announced it would allocate 100 billion yuan (about HK$93.09 billion) to encourage home ownership for Chinese nationals.
'This policy move has since thrown up a lot of opportunities awaiting our group to seize.' Dragon Land yesterday signed a co-operation agreement with local partner Beijing Ji Da Development to develop a 20.22 hectare site near the Imperial Palace and Tiananmen Square.
The project, Singapore Dragon City, will comprise about 5,000 residential units with full recreational and supporting commercial facilities, developed over the next five years.
The estimated total cost is 1.5 billion yuan but the projected revenue from sales from phase one alone is expected to be 2.2 billion yuan.