The credit crunch and growing fears of further measures to cool the property market have not stopped developers from acquiring development sites in major cities. In the past two days, they have spent almost 10 billion yuan (HK$11.45 billion) on land acquisitions.
'Developers have huge cash reserves after strong sales. They have to replenish land banks to capitalise on a market recovery,' one analyst said.
China Vanke, which raised 11.9 billion yuan from property sales last month, yesterday teamed up with BUCC Group to buy a residential site in Changping district in Beijing for 1.28 billion yuan, or 6,633 yuan per square metre.
The site could provide a gross floor area of 192,967 sq metres.
The Greenland Group bought a commercial site in Chaoyang district in Beijing for 2.58 billion yuan, or 7,696 yuan per square metre.
KWG Property Holding, which had contract sales of 8.2 billion yuan in the first eight months of this year, yesterday made its first foray in Shanghai. The Guangzhou company paid 1.1 billion yuan, or 14,000 yuan per square metre, for a commercial site near the World Expo venue in Pudong district.
