Guangzhou-based Times Property aims to be leading developer in Pearl River Delta
In the short term Times Property is focused on achieving regional leadership in the Pearl River Delta, but longer term the Guangzhou developer has its sights set on the national market
Michael Shum, who established Times Property in Guangzhou 16 years ago, has experienced several cycles in China’s real estate industry and is accustomed to the related government policy changes. With his understanding of the industry, 45-year-old Shum oversees decisions on important land acquisitions as well as guiding the whole investment strategy and future positioning of the developer. Longer term, Shum’s goal is to build Times Property into a leader in the industry nationwide.
The company has already achieved scale of 20 billion yuan (HK$23.7 billion). What is the next target?
First we want to focus on and become a regional leader in the Pearl River Delta, the area with the most dynamic economy in the country and [the area] we are most familiar with. We are confident that we can expand our sales to 50 to 60 billion in this region. And our long-term goal is to become the national industry leader. It will take some time for us.
How do you see the mainland China property market this year?
I’m positive about the market this year as the central government has issued a number of policies recently, from interest rate cuts to property tax cuts, which shows the government’s determination to stimulate transactions in the home market. Among the policies, rate cuts and the reduction in bank down payment requirements are the most direct ways to make it easier for consumers to buy a home.
For us, bidding for land from the government is not the only way to get land
And I think there is room for more easing policies if you compare current policies to the policy environment back in 2009. For example, the interest rate and tax can be further cut.