Property developer Shenzhen Investment has set a sales target of 4.5 billion yuan (HK$5.12 billion) this year - nearly 28 per cent higher than last year - but expects lower transaction volumes and tightened property policies from Beijing.
The property arm of the Shenzhen municipal government recorded a net profit of HK$987 million last year, up 13 per cent from 2008. Revenue, which includes rental income, increased 32 per cent to HK$5.39 billion.
Kalvin Zhu Guoqiang, the chief executive of the firm, said property transaction volumes in some first- and second-tier cities might dip 15 to 20 per cent this year because demand had been restrained owing to soaring housing prices.
'However, we estimate housing prices would remain firm, as developers show no intention to cut prices,' he said.
The company made HK$3.52 billion in property sales last year, a 39 per cent increase compared with the previous year.
This year, sales revenue generated from the company's 19 projects in Shenzhen, Wuhan, Changsha, Dongguan, Huizhou and Foshan is expected to reach 4.52 billion yuan, with an estimated average price of 9,715 yuan per square metre.
As part of its mid-term plan, Shenzhen Investment hopes to achieve 10 billion yuan a year in property sales in the next three to five years, with half coming from Shenzhen and Guangdong.
