New | Guangzhou-based Times Property defies competition in China market
Chairman bullish on prospects and will stay focused despite tough market
Times Property Holdings, a Guangzhou-based developer, sees better times ahead despite rising competition and will keep ploughing into urban redevelopment projects regardless of the fall of Kaisa Group Holdings, company founder and chairman Shum Chiu-hung said.
Kaisa, once the No1 homebuilder in Shenzhen, is embroiled in an anti-graft probe linked to a former senior local official when the firm was investing heavily in lucrative redevelopment projects in the past decade.
"This is only a company-specific case," Shum said. "There seems to be many difficulties [in the redevelopment market] now, but I think it'll get better with the policy becoming clearer and more transparent."
Urban redevelopment projects contributed 21 per cent to Times Property's sales last year and helped push the company's gross profit margin to 30.6 per cent from 24.1 per cent in 2013.
However, the political aspects of such projects have amplified investors' worries about the real estate industry's outlook at a time when many developers agree the sector's golden era has gone as growth in housing demand slows.
We can't stand out at a time when everyone can make money. Orderly competition fits me better
They are trying to diversify revenues. But focus is the key word for Times Property.