Guangzhou R&F Properties shifts focus beyond first-tier cities
Developer will put more money in secondary markets, where housing demand is tipped to increase
Guangzhou R&F Properties plans to increase investment in second- and third-tier mainland cities as the industry shifts its focus to the housing demand of end-users in the coming years.
Chairman Li Sze-lim said yesterday: "If we want to achieve a large property sales volume, we have to target end-users. The demand from end-users in second- and third-tier cities is stronger because of the urbanisation process. Property sales in first-tier cities, on the other hand, will remain slow."
The developer has expanded to 13 cities besides its major market, Guangzhou. In the first half of the year, R&F has been cautious about land acquisitions and bought just one site, in Hebei province. It expects to buy new sites in the second half.
"There are many investment opportunities in second- and third-tier cities," Li said. "We believe land prices won't rise significantly. We may actively acquire plots after the [central] leadership change, when there's policy stability.
"But we won't buy land aggressively unless they fit our requirements. We have a land bank of 28.31 million square metres."
R&F announced that its net profit for the first half plunged 35 per cent to 1.3 billion yuan (HK$1.58 billion), as its completed properties fell 36.6 per cent to 530,000 square metres during the period.