New World China has teamed up with a local developer to buy a residential and commercial site in Beijing for 820 million yuan (HK$956 million). The developers won the site in Beijing's suburban area at auction for 4,100 yuan per square metre. The 267,918-square metre site in Shunyi district could include housing and offices and provide a total gross floor area of 200,012 square metres. The company's mainland property business has recorded strong growth in recent years, which has supported its continued expansion on the mainland. New World China and New World Development managing director Henry Cheng Kar-shun told SNL Financial, a US data and news provider, in an interview on November 10, that the mainland market is becoming more promising. 'But in Hong Kong, because of the political issues, it is getting harder to do business. 'Hong Kong is a limited market [compared with the mainland], and there are more political issues,' he said. Hong Kong developers have been criticised for selling flats at inflated flats prices, leading to the widening wealth gap. He is cautious on the Hong Kong property market outlook. He added: 'Because the residential property market in Hong Kong is pretty volatile and because prices today are so high, we are quite hesitant to invest more because of the risks involved. 'But, of course, if there was a good buying opportunity we would definitely increase our land bank.' He said the company had a target of 20 per cent of total sales when they started to invest in mainland. 'But now it's going beyond that because the situation has changed. 'In Hong Kong, the focus is on margins, whereas on the mainland it's more about the volume.' Meanwhile, Shui On Construction and Materials announced yesterday it bought a 51,000 square metre space at a commercial project in Shanghai's Pudong financial district for about one billion yuan. The company has acquired the 26th to 49th floors of a 49-storey building and part of the 1st, 2nd and basement floors. The project, next to Shanghai World Financial Centre, is scheduled for completion next year.