CapitaLand books $396.7m in China home sales in past month during country's peak buying season

Homebuyers at the La Botanica sales office in Xian where 97 per cent of 535 units were sold for 585 million yuan (S$116 million).
Homebuyers at the La Botanica sales office in Xian where 97 per cent of 535 units were sold for 585 million yuan (S$116 million).PHOTO: CAPITALAND

SINGAPORE - CapitaLand on Wednesday (Nov 7) said it has held four successful residential launches in the past month, which coincided with "Golden September Silver October" - China's traditional high season for new home sales.

In total, these four launches sold 1,506 units with a total value of about two billion yuan (S$396.7 million) - marking CapitaLand's highest home sales value in China over a 30-day period this year.

Parc Botanica in Chengdu sold out all 388 units for 332 million yuan; The Lakeside in Wuhan sold about 90 per cent of its 372 units for 322 million yuan; La Botanica in Xian sold 97 per cent of 535 units for 585 million yuan; and The Metropolis in Kunshan sold over 90 per cent of 324 units for 758 million yuan.

Lucas Loh, president (China and Investment Management), CapitaLand Group, said: "As China's urbanisation continues unabated, the underlying demand for new homes in first and second-tier cities that are part of CapitaLand's core city clusters strategy remains healthy... CapitaLand will remain disciplined in our investment approach to build a sustainable residential pipeline in China while ensuring an optimal mix between trading and investment properties that will deliver sustainable value to shareholders. Amidst market headwinds, our land banking strategy, extensive network of partnerships and robust financial position will put CapitaLand in good stead to continue benefitting from China's growth."

CapitaLand has a pipeline of another 2,000 residential units ready for launch, which will be released according to market conditions. These include units in La Riva, CapitaLand's first residential development in Guangzhou's Datansha urban renewal project, and Century Park in Chengdu. Between June and August 2018, CapitaLand also acquired three prime sites in Chongqing and Guangzhou, adding 3,400 units to its pipeline of residences under development.

In the first half of 2018, CapitaLand sold 97 per cent of its launched residential units and handed over close to 3,000 units, an increase of 20 per cent over the same period in 2017.

In the second half of the year, CapitaLand expects to hand over more than half of the 8,000 units valued at a total of 16.2 billion yuan which had been sold in China.