Bullish Shimao doubles sales goal for mainland property market

Shimao Property Holdings has cast a vote of confidence in the mainland's real estate market, aiming to double its property sales to more than 17.8 billion yuan next year.

With its expansion into second- and third-tier cities, the company maintained strong property sales while selling prices for its projects managed to rise even after Beijing imposed more macroeconomic austerity measures to cool speculation, said chairman Hui Wing-mau, the mainland's second-richest man.

'We expect property sales to reach 8.9 billion yuan this year and to double next year,' said Mr Hui.

'You may probably hear a lot of news about the slowdown in the [property] markets in Shenzhen or other southern cities. But the impact [of the measures] is not serious in second- and third-tier cities.'

The central bank and the China Banking Regulatory Commission announced a mortgage policy on September 27 requiring buyers of second homes to make a 40 per cent down payment, an increase from 30 per cent.

Second-home buyers are also required to pay a higher interest rate than first-time buyers.