Shimao to bid for land
( 2003-09-17 15:20) (Shanghai Daily)
Hui wing Mau, ranked the second-richest man on the Chinese mainland by Forbes magazine last year, says his property firm is actively preparing to bid for land in Shanghai over the next two months.
The shimao Group, a major local property developer owned by Hui, will take part in the auction for two or three of the 59 plots of land due to be released in September and October, Hui revealed yesterday.
He insisted there is no bubble in the local real estate market. "Generally speaking, bubbles are closely linked to a lackluster economy. But Shanghai's stable growth offers strong support for the property market," said Hui, who will speak at the Forbes Forum tomorrow.
He predicted local housing prices are unlikely to witness wild turbulence since the city government will ensure stable economic growth.
Many observers have been worried that Shanghai's red-hot property market is close to bursting point, as the average housing price in the city has been climbing for 35 straight months. It hit 4,553 yuan (US$548.55) per square meter at the end of last year, latest figures available show.
However, Hui did admit the current property market is too crowded.
"Shanghai has about 3,000 real estate developers - that's too many, although they may target different customers," he noted. "But my company will stick to the high-end market."
Shimao plans to kick off high-end projects in some provincial capitals, such as its latest blueprint in Nanjing, Jiangsu Province, where it will invest 5 billion yuan to build a complex of residential buildings, hotel and commercial facilities.
In shanghai, Shimao's portfolio includes the Shimao Riviera Garden and Shimao Lakeside Garden in Pudong, both going for about US$2,000 per square meter.
"About 10 percent of housing demand overseas is for high-end properties, while that proportion is only 3 percent in Shanghai now," the tycoon revealed.
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